A native of California, Peterson received a bachelor's degree in Greek and philosophy from BYU and, after several years of study in Jerusalem and Cairo, earned his Ph.D. in near eastern languages and cultures from the University of California at Los Angeles.

Peterson is known for his work as an apologist and scholar on subjects dealing with The Church of Jesus Christ of Latter-day Saints (Mormon), of which he is a member. He has served as the editor of the FARMS Review, a periodical produced by the Foundation for Ancient Research and Mormon Studies. Peterson is a regular participant in online fora about Mormonism where he discusses the LDS faith and its apologetics. One of his most recent projects has been the development of a website featuring the testimonies of LDS scholars.

Peterson served a mission in the Switzerland Zurich mission. He served on the LDS Church's gospel doctrine committee and has also served in at least one BYU ward bishopric.

Peterson and his wife, the former Deborah Stephens, have three sons, Adam, Matt, and Joel. They live in the Utah.

Peterson is a bishop in the LDS Church.