Her mother returned to Australia and Peggy was educated at Rose Bay Convent, Sydney, as well as in France and England.

[2] Colin and Peggy Kelman then returned to Australia continued as graziers both in Moree, New South Wales and Julia Creek, Queensland; the couple had 5 children.

After their marriage in London, Peggy and her husband bought a used twin-engined light aircraft, a Monospar, and decided to fly home to Australia.

They flew by way of France, Italy, Greece, Egypt, Iraq, Iran, Pakistan, India, Burma, Malaya, Java, Timor, Darwin [9] and Moree and arrived home on 15 January 1937.

[11][12] She joined the international women pilots' association, The Ninety Nines, and became Australian governor of that organisation.