Pitfall traps placed in South Carolina peanut, Arachis hypogaea (L.), fields collected three species of burrower bugs (Cydnidae): Cyrtomenus ciliatus (Palisot de Beauvois), Sehirus cinctus cinctus (Palisot de Beauvois), and Pangaeus bilineatus (Say). Cyrtomenus ciliatus was rarely collected. Sehirus cinctus produced a nymphal cohort in peanut during May and June, probably because of abundant henbit seeds, Lamium amplexicaule L., in strip-till production systems. No S. cinctus were present during peanut pod formation. Pangaeus bilineatus was the most abundant species collected and the only species associated with peanut kernel feeding injury. Overwintering P. bilineatus adults were present in a conservation tillage peanut field before planting and two to three subsequent generations were observed. Few nymphs were collected until the R6 (full seed) growth stage. Tillage and choice of cover crop affected P. bilineatus populations. Peanuts strip-tilled into corn or wheat residue had greater P. bilineatus populations and kernel-feeding than conventional tillage or strip-tillage into rye residue. Fall tillage before planting a wheat cover crop also reduced burrower bug feeding on peanut. At-pegging (early July) granular chlorpyrifos treatments were most consistent in suppressing kernel feeding. Kernels fed on by P. bilineatus were on average 10% lighter than unfed on kernels. Pangaeus bilineatus feeding reduced peanut grade by reducing individual kernel weight, and increasing the percentage damaged kernels. Each 10% increase in kernels fed on by P. bilineatus was associated with a 1.7% decrease in total sound mature kernels, and kernel feeding levels above 30% increase the risk of damaged kernel grade penalties.