On February 28, 1948, Peter and Marguerite Lazzara welcomed a daughter, Bernadette, into the world. By the time she was six, Bernadette had starring roles on the television shows Juvenile Jury, Name That Tune, and The Horn and Hardart Children's Hour.

When she was nine, she decided to use the stage name "Bernadette Peters" to avoid any ethnic stereotyping. After performing in a touring production of Gypsy and receiving critical acclaim for her work in the musical Dames at Sea, the young actress made her Broadway debut in the show Johnny No-Trump (1967).

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