Peiper was convicted in the Malmedy massacre trial and sentenced to death. The sentence was commuted, with Peiper serving twelve years in prison. Peiper was accused of committing the Boves massacre in Italy; the investigation was closed due to insufficient evidence that he directly issued the order to kill civilians. After his release from prison, Peiper worked for both Porsche and Volkswagen before moving to France, where he worked as a freelance translator. Throughout, he maintained frequent, albeit discreet, contact with his SS network, including HIAG, a Waffen-SS lobby group. Peiper was murdered in France in July 1976, after his identity as an SS member and war criminal had been publicized there.

A relatively insignificant combat leader, Peiper achieved cult status among those who romanticize the Waffen-SS.[1] With his good looks and a multitude of awards, Peiper came to represent the image of the daring Panzer divisions.[2] The admiration continues to the 2020s, with the official Facebook account of the United States Department of Defense featuring a glamorized picture of Peiper to commemorate the 2019 anniversary of the Battle of the Bulge.[3][4][5] The Waffen-SS historian Jens Westemeier stated that, "Peiper was an embodiment of the Nazi ideology and an egocentric, ruthless commander who ignored his own losses and created a culture within his unit where war crimes were not only tolerated but expected."[6]