The pub landlady – who has been played by Barbara Windsor for the past 16 years – quit Walford in the aftermath of the fire which ravaged the Queen Vic.
The dramatic scenes, shown on Thursday’s episode, saw Peggy escape from the blazing pub after Phil set it alight.
And on Friday’s extended show she attempted to tie up some loose ends before leaving Walford for good.
She paid a visit to Stacey Branning in hospital, urging her to take the blame for the fire, after Stacey confessed to her that she had murdered Archie in Thursday night’s episode.
Peggy also learned that Ronnie was five months pregnant, and she bid a tearful farewell to Sam who begged her to stay.
She then begged Phil to go away with, but when he refused she made up her mind to make a fresh start without him.
And despite his pleas for her to stay in Walford she delivered her final line in the show, “I’ll be fine. Go on, darling, go back inside,” before walking off into the distance.
A specially reworked version of the theme tune, called Peggy’s Theme, accompanied her exit during her final scene.