Peony grew up in Keterburg along with Jade, Dist, and Jade's sister Nephry. The reasons for this are not certain but it is believed it would protect him from harm and the politics involve with ruling a nation. For those who don't know Keterburg is the coldest and snowiest place in Auldrant. While he was there he became best friends with the snarky man known as Jade (who wasn't so snarky at the time). He even went so far as to sneak in and sit in on Jade's lessons with Professor Nebilim.

Peony's early relationship with Jade caused many problems with in Keterburg, specifically involving Dist (who was known by his birth name of Saphir back then). Dist was jealous and felt like an outcast as Jade and Peony became closer. Dist still harbors a lot of hatred for Peony and believes in some ways that Peony was the one who 'corrupted' Jade.

Peony grew up quickly and realized that he had fallen for Jade's sister Nephry. He tried to be with her and even wanted to marry her. For reasons not explained in the game Nephry rejected Peony (as shown in the Peony Gaiden). This was because of the class difference. Nephry realized this and moved on. She did this without emotion and some even go as far as to say that she never loved him back. Peony on the other hard swore never to marry.

Peony was crowned as the Emperor of Malkuth and Jade eventually returned to his side to be a Colonel in the army to be by Peony's side. There are various theories on this some believe that it has to do with the "skeletons in Jade's closet" as the phrase would say. Peony seems happy as Emperor and remains as approachable a he was in his humble childhood. He is still responsible and very concerned about Nephry, Jade and even Dist. He still isn't married at the end of the game.