Nursing students commonly engage in clinical education in municipal elderly healthcare. Therefore, it is important to use a pedagogical model that provides the best conditions for nursing students to develop clinical competence. The aim of this study was to describe and interpret nurse preceptors’ experiences of a newly implemented pedagogical model, peer learning, in municipal elderly care home settings. Nine registered nurses from elderly care homes with precepting experience participated. Data were collected through individual interviews, and a thematic content analysis was performed. The study followed the Consolidated Criteria for Reporting Qualitative Research (COREQ) checklist. The findings revealed four sub-themes: ‘requiring careful preparation’; ‘contributing control and trust in the learning process’; ‘changing perspectives brings new opportunities and challenges’; and ‘enabling students to believe in themselves’, all interpreted into the main theme of ‘demanding yet supportive and developing’. In conclusion, municipal elderly care homes seemed to be a learning environment well suited for using the peer learning pedagogical model.