Prepare your workspace by ensuring everything is clean and accessible.

In a mixing bowl, combine the peanut butter and softened butter until smooth.

Gradually add the powdered sugar and vanilla extract, mixing well.

Form the mixture into small balls, about 1 inch in diameter.

Place the peanut butter balls on a lined cookie sheet and refrigerate for 30 minutes.

Melt the chocolate chips in a double boiler or microwave, stirring until smooth.

Using a fork or toothpick, dip each peanut butter ball into the melted chocolate, allowing excess to drip off.

Place the dipped balls on the parchment-lined sheet to set.