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Line an 8x8-inch baking dish with parchment paper, leaving some overhang on the sides for easy removal.
In a large microwave-safe bowl, combine the butter and peanut butter. Microwave in 30-second intervals, stirring after each, until completely melted and smooth.
Add the confectioners’ sugar and stir until fully combined. The mixture will be thick.
Transfer the mixture to the prepared pan. Place a second sheet of parchment paper on top and gently press with your hands to spread the fudge evenly to the edges.
Remove the top layer of parchment and smooth out the surface if needed.
Refrigerate for about 2 hours, or until the fudge is set.