In a medium bowl, mix together the crushed pretzels, melted butter, and 3 tablespoons of granulated sugar. Press the mixture into the bottom of a 9×13 inch baking dish. Bake for 10 minutes, then let it cool completely.
In a large bowl, beat the cream cheese and 1 cup of granulated sugar until smooth. Fold in the whipped topping.
Spread the cream cheese mixture over the cooled pretzel crust.
In a separate bowl, dissolve the peach-flavored gelatin in 2 cups of boiling water. Stir until the gelatin is completely dissolved, then add the sliced peaches.
Pour the gelatin mixture over the cream cheese layer.
Chill the Peach Pretzel Jello Salad in the refrigerator for at least 2 hours, or until the gelatin is set.
Cut the salad into squares and serve chilled. Enjoy!