Peeling modes are observed at the plasma edge in the Pegasus Toroidal Experiment under conditions of high edge current density (Jedge ∼ 0.1 MA m−2) and low magnetic field (B ∼ 0.1 T) present at near-unity aspect ratio. Their macroscopic properties are measured using external Mirnov coil arrays, Langmuir probes and high-speed visible imaging. The modest edge parameters and short pulse lengths of Pegasus discharges permit direct measurement of the internal magnetic field structure with an insertable array of Hall-effect sensors, providing the current profile and its temporal evolution. Peeling modes generate coherent, edge-localized electromagnetic activity with low toroidal mode numbers n ⩽ 3 and high poloidal mode numbers, in agreement with theoretical expectations of a low-n external kink structure. Coherent MHD fluctuation amplitudes are found to be strongly dependent on the experimentally measured Jedge/B peeling instability drive, consistent with theory. Peeling modes nonlinearly generate ELM-like, field-aligned filamentary structures that detach from the edge and propagate radially outward. The KFIT equilibrium code is extended with an Akima spline profile parameterization and an improved model for induced toroidal wall current estimation to obtain a reconstruction during peeling activity with its current profile constrained by internal Hall measurements. It is used to test the analytic peeling stability criterion and numerically evaluate ideal MHD stability. Both approaches predict instability, in agreement with experiment, with the latter identifying an unstable external kink.