He was born in Copenhagen in the family of the leading soloists of the Royal Danish Ballet Frank Schaufuss and Mona Vangso. In 1970-1973 they were at the head of the company and the school.
While being at school he debuted in Pas de deux in Don Quixote and in 1965 joined the Royal Danish Ballet Company. Soon he was invited as the leading soloist to the National Ballet of Canada, then to the London Festival ballet, and in 1974 to New York City Ballet. He danced the leading roles in ballets of Balanchine, Petit, Ashton and MacMillan.
He choreographed authorized versions of such ballets as Napoli, Sylphide, Giselle, Swan Lake, Sleeping Beauty and Nutcracker.
He was at the head of such companies as: London Festival Ballet, Berlin Opera Ballet and the Royal Danish Ballet.
He formed his own company: Peter Schaufuss Ballet in Holstebro.