As one of the New Year's Six bowl games, the participants of the game were determined by the College Football Playoff selection committee rather than being based on conference tie-ins.
This was the eighth meeting between Pittsburgh and Michigan State; heading into the game, the Spartans led the all-time series, 6–0–1. The Spartans improved their series record to 7–0–1 all-time.[7][8] This was the first Peach Bowl appearance for both programs.
In head coach Pat Narduzzi's seventh season, the Panthers finished in first place in the ACC Coastal division with a record of 11–2, 7–1 in ACC play. It was the first 11-win season for the Panthers since 1981. Pitt was selected to finish fourth in the ACC Coastal, but a return from super senior quarterback Kenny Pickett helped the Panthers to significant wins over Clemson and Tennessee. The Panthers clinched the ACC Coastal division with a 48–38 win over Virginia on senior night, winning the division for the second time since 2018. They defeated Wake Forest in the ACC Championship Game, becoming the first school other than Clemson or Florida State to win the conference championship since 2010.[9]
Pittsburgh quarterback Kenny Pickett was the recipient of many awards for his play during the season. Pickett came in third place in voting for the Heisman Trophy,[10] broke Deshaun Watson's single-season ACC record for passing touchdowns with 40,[11] and broke the Panthers' all-time record for touchdown passes, previously held by Dan Marino.[12] Pickett was also named the ACC Player of the Year, the ACC Offensive Player of the Year, and the Johnny Unitas Golden Arm Award winner.[13][14] Pittsburgh receiver Jordan Addison was named the Biletnikoff Award winner, which recognizes FBS football's best receiver.[15] Addison was the third Pitt player to win the award, moving Pitt into a tie for having the most Biletnikoff winners.
Pickett announced he would not play in the game to prepare for the NFL draft.[16]
In head coach Mel Tucker's second season, Michigan State finished the regular season 10–2 overall and 7–2 in Big Ten play, finishing third in the East division. It was the first 10-win season for the Spartans since 2017. The Spartans, picked to finish in last place in their division after winning only two games the prior season,[17] started the season 8–0, including a win over the eventual Big Ten champion, Michigan, the Wolverines' only loss of the regular season.[18] The Spartans suffered their first loss of the season against Purdue,[19] but still had a chance to win the Big Ten before being blown out by Ohio State.
Running back Kenneth Walker III was named the Walter Camp Award winner as the college football player of the year, decided by a group of coaches and sports information directors.[20] He was also named the winner of the Doak Walker Award as the nation's top running back and[21] became the first player to win the Camp Award while not being named a finalist for the Heisman Trophy.[22] He is the only Michigan State player to win either award in the school's history.[20] Walker led the Spartans and was second in the country with 1,636 rushing yards and added 18 touchdowns.[23] He announced in late December that he would not play in the game to prepare for the NFL draft.[24]
MSU had the nation's worst passing defense, allowing 337.7 yards per game.[25]