A right-handed batter and thrower, he appeared in 65 major league games over four seasons (1955; 1957–59) and batted .273 with three home runs in limited service, due to a two-year stint in Korea with the U.S. Army.

On Peterson's watch, the Pirates remained consistent contenders and in 1979 won the National League pennant and defeated the favored Baltimore Orioles in a seven-game World Series.

Later in the season, he put together a package of three pitchers and acquired two-time National League batting champion Bill Madlock from the San Francisco Giants.

After a series of missteps which included the acquisitions of veterans Amos Otis, Gene Tenace and George Hendrick, Peterson was fired on May 23, 1985 and replaced by his predecessor Brown.

Peterson spent the remainder of his career as a consultant/major league scout for both the San Diego Padres and Toronto Blue Jays organizations, and fully retired from baseball in 1995.