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Peyton-McDonald died on December 13, 1986 at the age of 29 as a result of an inoperable brain tumor that she first disclosed to the public in 1979.

Peyton attended Stanford University, where she swam for the Stanford Cardinal swimming and diving team. At Stanford, she met her husband Drew McDonald, who won a silver medal as a member of the 1984 U.S. Olympic water polo team.

Peyton represented the United States at the 1972 Summer Olympics in Munich as a backup swimmer. In the 1976 Summer Olympics in Montreal, Quebec, she won a gold medal in the 4×100-meter freestyle relay with teammates Jill Sterkel, Shirley Babashoff, and Wendy Boglioli, setting a new world record with a time of 3:44.82. This record would stand until August 26, 1978, when another United States swim team of Cynthia Woodhead, Jill Sterkel, Stephanie Elkins and Tracy Caulkins broke it with a time of 3:43.43 in West Berlin.

Peyton-McDonald was honored in 1975 with the Bill Hayward Johnny Carpenter Prep athlete of the year award as the Outstanding Amateur Athlete in Oregon. In 1989, she was inducted posthumously into the Oregon Sports Hall of Fame.

She swam for the David Douglas High School Swim Club in Portland, Oregon, where she held numerous Oregon Class 4A swim records including 200-yard medley relay (1974, 1975, 1976); 200-yard freestyle (1972, 1974, 1975); 50-yard freestyle (1971); 100-yard freestyle (1972, 1974); 500-yard freestyle (1975); 200-yard freestyle relay (1971, 1972); 400-yard freestyle relay (1974, 1975); 400-yard freestyle (1971).

Peyton broke her own Oregon 17–18 girls 400-meter freestyle record on August 1, 1974. This record time of 4:20.35 was to stand until July 26, 1997 when Lauren Thies set a new time of 4:15.97.

She participated in two Pan American Games: in 1971 Pan American Games in Cali, Colombia, and the 1975 Pan American Games in Mexico City. In 1971, she won a gold medal in the 200m freestyle; in 1975, she won four gold medals: in the 100m freestyle, the 200m freestyle, the 4 × 100 m freestyle relay, and the 4 × 100 m medley relay. She was chosen as United States' flag bearer for the closing ceremonies of the 1975 games held at Aztec Stadium.

Kimberly Marie Peyton (January 26, 1957 – December 13, 1986), also known by her married name Kimberly McDonald, was an American swimmer and Olympic gold medalist at the 1976 Summer Olympics. She was inducted into the Oregon Sports Hall of Fame in 1989, three years after her death at age 29 from a brain tumor.