Liverpool youngster Lee Peltier joined Norwich City on trial on 21st January 2008. He played in a reserve team match against Colchester United which finised 1-1 and was said to have put in a solid performance in front of Glenn Roeder. However nothing further materialised and on 31st January 2008, he signed for former club Yeovil Town for a small fee, signing a three year contract with the Glovers.

Peltier, who can play as a right back or in midfield, was a regular member of Liverpool's reserve team squad and was highly rated by the Melwood staff. In August 2006 he was named in the first-team squad for the first time, as an unused substitute for a Champions League qualifier against Maccabi Haifa. Two months later he made his debut in a League Cup tie against Reading on 25 October 2006.

He made his UEFA Champions League debut for Liverpool against Galatasaray on 5 December 2006. He played the full ninety minutes at right back but Liverpool lost 3-2.

On 16 March 2007 Peltier was subject to an emergency loan cover agreement, and transferred to Hull City F.C. until the end of the season. He made 7 appearances for the Tigers

He was loaned again in July 2007, joining Yeovil until the end of December 2007. He made 23 appearances for the Somerset side whom were keen to keep him at Huish Park.

On 30th June 2009, he signed a three year contract with Huddersfield. Huddersfield boss Lee Clark told BBC Radio Leeds: "Lee is a player I know well; he is a fantastic athlete and is very accomplished on the ball. We had him on trial when I was assistant at Norwich City but we didn't have the finances to secure the deal." Peltier had made 49 appearances for Yeovil.

On 21st June 2011, it was reported that Leicester City had agreed to sign right-back Peltier for an undisclosed fee. Peltier has accepted a three-year deal and is set to seal the move when the paperwork is completed on Wednesday. The 24-year-old will be boss Sven-Goran Eriksson's first signing of what is expected to be a very busy summer. Football director Andrew Neville said: "He's an exciting addition with his best years ahead of him, which is vital as we build for the long term. Given the number of admirers his performances have drawn this season, we are extremely pleased to have secured his services. Lee was quickly identified by Sven as a player that could add considerable quality to the squad and was well known to Sven's assistant, Derek Fazackerley, from his time with Huddersfield."

On 4th August 2012, Lee became Neil Warnock's tenth signing of the 2012 pre-season when he joined Leeds on a three year deal. It is reported that Leeds paid approximately £850,000 for Peltier's signature.

On 24th March 2014, both Leeds and Notts Forest announced that Peltier had joined Forest on loan until the end of the season. This was then denied by Forest's owners with rumours that Peltier was heading to Bolton. However on 27th March, the loan deal to Forest was confirmed.

Peltier left Leeds on 23rd June 2014 and immediately re-signed for Huddersfield on a three year deal. This didn't last long as Peltier joined Cardiff on a deal until the summer of 2018 on January 24th 2015, becoming manager Russell Slade's third signing of the transfer window. "I'm looking for success and I think I can find that here," said Peltier. "The move came about quite quickly; my agent spoke to me early in the week and said Cardiff were interested and that made me want to talk to the club.I've worked under the gaffer [Russell Slade] before [at Yeovil] and he's asked me to come into the group and give it my all."

Peltier played 30 games in 2017/18 as Cardiff finished second in the Championship and won promotion to the Premier League. He had made 116 appearances in total for the Bluebirds.

On 31st January 2020, Peltier signed for West Brom on a short term contract until the end of 2019/20 after being released by Cardiff. Sporting & technical director Luke Dowling said "Lee will provide tough, proven experience and 'know-how' for us across a variety of roles in defence. We felt we needed some cover and once we knew Lee would be available it made good sense to bring him in." He had played 163 games for Cardiff

He was released by West Brom on 27th May 2021. He then joined Middlesbrough on 2nd July 2021 teaming with former Cardiff boss Neil Warnock who said "I know what Lee can do. He's fantastic in the dressing room, and we haven't got many senior pros in there."

He was released by Boro on 9th May 2022 after making 26 appearances. He joined Rotherham on 28th July 2022 signing a one year contract.

Peltier was in the Rotherham line-up that lost 1-0 at home to Plymouth on 5th April 2024 securing their relegation to League One.