1590s, "resembling a peach" in color, texture, or some other way, from peach (n.) + -y (2). Slang sense of "attractive" attested by 1900. Extended form peachy-keen recorded from 1953. Related: Peachiness.
peace-keeping
peacemaker
peacenik
peacetime
peach
peachy
peacock
peahen
peak
peaked
peal