Second Lieutenant Peterson was a crew member of a B-29A Superfortress Bomber with the 372th Bomber Squadron, 307th Bomber Wing based at Kadena Air Base, Okinawa. On 13 September 1951, the aircraft was on a combat mission when it crashed into a mountain near Taem-dong, South Korea, killing all 14 servicemen on board.

Peterson was awarded the Purple Heart, the Korean Service Medal, the United Nations Service Medal, the National Defense Service Medal, the Korean Presidential Unit Citation and the Republic of Korea War Service Medal.