Not much of Peg-Leg Peg's passing is revealed. But during her life, she sailed the vast Never Sea with her beloved Captain Treasure Tooth. At sometime she passed away and ascended into Pirate Paradise, still waiting for Treasure Tooth.
Peg-Leg Peg is briefly seen as a painting aboard Treasure Tooth's ship as he informs Jake and his crew his quest to find his golden figurehead so he can be reunited with Peg in Pirate Paradise. Peg is not seen until the end of the episode reuniting with Treasure Tooth aboard the Spirit of the Seas after discovering his figurehead once more. The duo is last seen briefly breaking into song before sailing into Pirate Paradise.