In a large mixing bowl, combine softened cream cheese and creamy peanut butter. Using an electric mixer, beat the mixture on medium speed until smooth and free of lumps—about 2 minutes.

Add the powdered sugar and vanilla extract to your creamy mixture. Blend on low speed until fully combined, about 30 seconds.

Gently fold in the Cool Whip using a spatula, aiming for a fluffy consistency without overmixing.

Once fluffy, stir in the mini chocolate chips, ensuring even distribution. Save a handful for garnishing.

Transfer the dip into a serving bowl and cover with plastic wrap. Refrigerate for at least 30 minutes.

After chilling, remove the dip from the refrigerator and sprinkle with reserved mini chocolate chips. Serve cold with dippers like graham crackers, pretzels, or apple slices.