Place marshmallows into the freezer until ready to use.
In a large saucepan, melt the peanut butter, butter, salt, and butterscotch chips over medium heat, stirring occasionally until all of the ingredients are melted and fully incorporated.
¾ cup creamy peanut butter, ½ cup salted butter, ½ teaspoon kosher salt, 11 ounces butterscotch chips
Once melted, remove from heat and stir in the vanilla extract.
1 teaspoon pure vanilla extract
Still off the heat, add the rainbow mini marshmallows to the saucepan until incorporated.
10 ounces rainbow mini marshmallows
Quickly pour the mixture into a greased 8x8-inch baking dish, spreading it evenly with a spatula.
Let the squares cool to room temperature or place them in the refrigerator to set more quickly.
Once set, cut into squares and enjoy!