Gather all your ingredients and let them sit at room temperature for about 15 minutes.

In a mixing bowl, beat the softened whipped cream cheese and powdered sugar together until smooth and creamy for 2-3 minutes.

Gently fold in the Cool Whip until just combined to maintain a light and airy texture.

Mix in the pure peppermint extract slowly and adjust to taste.

Spoon the mixture into a serving bowl and sprinkle crushed candy canes on top.

Refrigerate the dip for at least 1 hour before serving.