Peldon was born in New York City, New York. Her younger sister Ashley is also an actress. Both she and Ashley became involved in the entertainment industry as a child actor.
Peldon graduated from Skidmore College where she majored in abnormal psychology and minored in film studies.
Peldon starred on Broadway at age 8 in the Gershwin Theatre Meet Me in St. Louis for the show's entire run in the role of 'Tootie', originated by Margaret O'Brien in the Judy Garland film version.

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