To assess the genetic variability of peanut (Arachis hypogaea L.) in tolerance to iron (Fe) deficiency, spectral and photosynthetic parameters of 12 peanut cultivars were determined. The results showed that peanut exhibit significant variations in spectral and photosynthetic parameters within cultivars in response to Fe deficiency. The 12 peanut cultivars were separated into three groups, which include (i) a Fe-deficient tolerant cultivar (‘Zhenghong 3’), (ii) a Fe-deficient sensitive cultivar (‘Huayu 22’), and (iii) ten intermediate cultivars. Iron deficiency caused an increase in root biomass, root/shoot ratio, structure independent pigment index and intercellular carbon dioxide (CO2) concentration, but resulted in a decrease in net photosynthetic rate (Pn), quantum yield of PS II photochemistry (Fv/Fm), effective quantum yield of PS II (ΦPS II), photochemical reflectance index, red edge point, and chlorophyll normalized difference index. Iron deficiency-induced decline in net photosynthetic rate may be resulted from the reduction of photosynthetic pigment contents and inhibition of PSII photochemistry.