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In August 2014, after playing together as The Psycho Sisters for more than 20 years, Peterson and Susan Cowsill released their first album, entitled Up on the Chair, Beatrice. In 2017, she and John Cowsill joined with Bill Mumy as the band Action Skulls to release an album (also including posthumous contributions from the bassist Rick Rosas) entitled "Angels Hear".

Peterson described herself as a solo artist in her early years – "I was a kid who brought her guitar to every sleep-over and summer afternoon in the park to play her newest creation to anyone who would listen…" In high school she formed a band that went through various incarnations as Crista Galli, Aishi, The Muze, The Fans, and Those Girls from 1976 to 1980.

Peterson married musician John Cowsill on October 25, 2003. An earlier relationship had ended when her fiance Bobby Donati died of leukemia in 1991.

After The Bangles disbanded in 1989, Peterson played with the Continental Drifters and The Psycho Sisters, in both cases alongside Susan Cowsill. In addition to performing their own material, The Psycho Sisters freelanced as backing singers (Steve Wynn's Fluorescent, Giant Sand's Center of the Universe), and Peterson has also contributed harmony vocals to recordings by the Hoodoo Gurus, John Doe, Tom Petty and Belinda Carlisle. Additionally, she replaced a pregnant Charlotte Caffey on the 1994–95 Go-Go's reunion tour. In 1999 the Bangles reformed and have recorded and played sporadically since.

In 1981, she founded The Bangs, later renamed The Bangles, with her sister Debbi Peterson, and Susanna Hoffs.

Victoria Anne Theresa Peterson Cowsill (born January 11, 1958) is an American rock musician and songwriter. She has been the lead guitarist for the Bangles since their foundation in 1981, and after their first breakup in 1989 she has returned to the band for all subsequent reunions. In intervening years she performed with other artists, most extensively with the Continental Drifters.