He was a native of Wuhan, Hubei province, in central China.
Peng learned to play the erhu beginning at age seven.
In 1956, he became the conductor and director of China Broadcasting Chinese Orchestra, an orchestra of Chinese traditional (and modernized traditional) instruments, based in Beijing.Peng Xiuwen composed a piece of orchestral music inspired by Tang dynasty poet Zhang Ruoxu's famous poem "Spring River in the Flower Moon Night" (Chun Jiang Hua Yue Ye, ?????).
It has since entered the classical repertoire for the traditional Chinese instrument guzheng.