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Butter an 8x8 baking dish or cover with parchment paper, making sure to leave plenty of parchment hanging over the sides.
In a large pot over medium heat, melt the butter and peanut butter, stirring occasionally. Bring to a boil and remove from heat.
Stir in the salt and vanilla extract until smooth. Add the powdered sugar and mix until well combined and smooth with no lumps remaining.
Pour the fudge mixture into the prepared baking dish and use the back of a spoon to smooth into an even layer. Place plastic wrap over the dish and gently press down on the top of the fudge to cover. Refrigerate for 1 hour before slicing.