In a mixing bowl, combine peanut butter and softened butter until well blended.
Gradually add powdered sugar and vanilla extract, mixing until smooth and well combined.
Shape the mixture into small balls, about 1 inch in diameter, and place them on a parchment-lined baking sheet.
Place the baking sheet in the freezer for about 15-30 minutes to firm up the peanut butter balls.
In a microwave-safe bowl, melt the chocolate chips in 30-second intervals, stirring after each interval until smooth and creamy.
Using a toothpick or fork, dip each peanut butter ball into the melted chocolate, fully coating it.
Place the coated balls back onto the parchment-lined baking sheet and refrigerate until the chocolate is firm `for about 1 hour.
Once the chocolate has set, you can store the peanut butter balls in an airtight container in the refrigerator for up to 2 weeks.