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The former England international, who moved to the Britannia Stadium for £10million six years ago, will now remain with the Potters until at least the summer of 2019.
Crouch, 36, has scored three times for Stoke in the Premier League this season taking his overall tally to 58 for Mark Hughes' side.
The forward scored the winner for Stoke in their 2-1 victory against Southampton in September, before he was on target earlier this month to salvage a late point against Leicester. He also scored the equaliser for Stoke in their 1-1 draw at West Brom back in August.
Crouch has made 440 appearances in the Premier League during a career which has included spells at Tottenham, Portsmouth, Southampton and Liverpool. He has scored 106 goals during that time.
"Peter has been with Stoke longer than he has been with any other club which I think speaks volumes for how he views us and how we view him," said Stoke boss Hughes.
"He still has so much to offer us. He may be 36 but he continues to have a major impact on games, as he has proved on numerous occasions this season."
Stoke's chief executive Tony Scholes added: "The discussions with Peter and his representatives were very straightforward; Peter is happy here and made no secret of his desire to stay with the club. We're delighted with the news.
"There were one or two raised eyebrows when we signed Peter from Tottenham because it was a huge outlay for us as a club at the time but he has now signed his fourth contract and has been a vital figure for us in the Premier League."
Mark Hughes understands the frustration of Stoke fans and accepts he is now held to a higher standardRead the full story ›
Stoke boss Mark Hughes has assured Bojan Krkic he wants to give him "good game time" between now and the end of the season.
So far this term in the Premier League the Spanish playmaker has only started five matches and come off the bench three times, and his representatives have held talks with Hughes over the matter.
Asked about that at a press conference on Thursday, Hughes stressed Stoke want Bojan to stay and insists he remains a "big part" of their plans, while also emphasising the importance of making "correct" decisions about when he is utilised.
Bojan's people came in and we had a discussion. It [the amount Bojan has played] has been more to do with a slight change in formation and the way we have gone in certain games which I felt probably wouldn't allow his talents to come to the fore as much.
Then sometimes when we have been protecting leads, he hasn't been the right option off the bench. Other times you look to bring him on, which we did to good effect at West Ham [a 1-1 draw in November in which he scored].
I made my feelings known. Clearly he wants to play more, and I want to give him more opportunity from now until the end of the season. It's just making sure we get those decisions correct in terms of when he plays and when he has an impact.
He is very well thought of, an outstanding player and is going to get good game time from now until the end of the year - it is just up to us to make sure he is happy enough with the game time we give him. My position on it is clear - we want him to stay. He is a big part of what we are doing.