In 1977, at age thirteen, she played Linda, the younger sister of John Travolta's Tony, in the classic film Saturday Night Fever.
Later in 1977, Peluso debuted on daytime television as Wendy Wilkins on Search for Tomorrow, a role she played until December 1985, one year before the series ended.
Peluso replaced Andrea McArdle who vacated the role to star in the Broadway musical Annie.
She has also appeared twice on the ABC soap opera One Life to Live, first as "Billie Giordano" from 1987 to 1988, then as "Gina Russo" in 2001.
Peluso was featured on a 2002 episode of the TLC Network series A Baby Story, chronicling her pregnancy and the birth of her second child, Parker Nathaniel Guice.