Peanut is a hyperactive, purple-skinned "woozle" with white fur covering most of his body, a tuft of green hair on the top of his head, and one sneaker on his left foot. Dunham explains in


Arguing with Myself that Peanut is from a small Micronesian island, and that they met in Florida. Peanut's humor is not based on a particular motif or stereotype, as those of the other characters, and has been described as "the bad kid". He often makes fun of Dunham, and torments and mocks José Jalapeño on a Stick, whom he is partnered with. Touching upon his unusual appearance and personality, he asks Dunham in Arguing with Myself, after Dunham denies ever having done drugs, "Then how the hell did you come up with me?"

Peanut, along with Walter and Achmed, have been Dunham's most popular puppets. He is known for sliding his hair and saying "nee-ow!" when doing it. His right arm is the only arm that works and he is one of the few characters to have this opportunity.