Dolan was from Newark, New Jersey. Her parents were Mr. and Mrs. Henry Hoffman Dolan. Her grandmother was Mrs. Thomas J. Dolan (née Isabel W. Hoffman) of Villanova, Pennsylvania. Peggy was a guest of former New York governor Alfred E. Smith at a birthday party for his son, Alfred E. Smith, Jr., in January 1930. The birthday dinner took place at the Patio Lamaze in Palm Beach, Florida.
She competed in a national beauty contest in Universal City in June 1915. Dolan was a third runner-up to Ruth M. Purcell of Washington, D.C., who was crowned the most beautiful girl in America from among sixty contestants.
In June 1920 Dolan appeared with George White's Scandals, in a revue which began performing as Scandals of 1920. The production was staged at the Globe Theater in New York City. The music was written by George Gershwin with lyrics by Arthur Jackson. The show was produced by White and Andrew Rice. The troupe was headed by White and Ann Pennington.
She acted with Edward Leiter and Joe Kearns in Truth, staged at the Sum-Toy-Sho Theater in Los Angeles, California, in March 1926. Dolan played the feminine lead. In 1928 she was in the cast of the operatic comedy The Red Robe. It was presented at the Shubert Theater in New Haven, Connecticut, prior to its Broadway debut. Manilla Powers and Gloria Foy were among the show's players.
She teamed with Nina Underwood to provide singing and dancing for an annual fashion show conducted by the National Secretaries Association in November 1958. Autumn Leaves was the theme of the event which was held in Downey, California.
Dolan was the subject of testimony given during the trial of Franklyn Ardell, a singer and comedian with the George White revue. He was dismissed by White after it was discovered that he was providing chorus girls with drinks (alcoholic beverages) on stage, in his dressing room, and at Dinty Moore's restaurant, near the Globe Theater. Marian Courtney, one of the dancers at a party given by Ardell, testified at his trial, which came before the New York Supreme Court in March 1925. Ardell sued White for $27,000, the amount he lost when his $600 per week contract was terminated by the theatrical manager. Ardell contended that he was fired because the production was not doing well financially. Furthermore, White did not extend him the five or six weeks notice he should have been granted. Katherine Chapman[who?] gave testimony that she accompanied Dolan when she was asked by Ardell to go with him to a Long Island club. Dolan did not want to go alone. Ardell lost his suit.
- "The Red Robe". Bridgeport Telegram. March 17, 1928. p. 28.
- "Fined $27,000 For Tempting the Stage Beauties". Galveston Daily News. March 22, 1925. p. 14.
- "Name Fairest Girl Of All". Los Angeles Times. June 13, 1915. p. I10.
- "O'Neill Production Staged By Students". Los Angeles Times. March 9, 1926. p. A11.
- "Show Will Emphasize Fall Wear". Los Angeles Times. November 2, 1958. p. SC6.
- "The Week's Plays". New York Times. June 6, 1920. p. 64.
- "Palm Beach Dinner For J.H. Perkins". New York Times. January 28, 1930. p. 20.
- "Notes of Social Activities in New York and Elsewhere". New York Times. March 5, 1936. p. 26.