She worked there until 1956. During this time she maintained a long, fruitful association with choreographer Antony Tudor. From 1956 until 1960 she undertook freelance teaching and producing in Germany, Canada, Denmark, Sweden, the Netherlands and the US. In 1959, on the recommendation of Ninette de Valois, van Praagh was appointed Artistic Director of the Borovansky Ballet in 1960. Following the demise of the Borovansky Ballet in 1961 and its subsequent reformation as Australian Ballet, she became its founding artistic director in 1962, where she remained until 1974, and was invited back again for the 1978 season. From 1965–1974, van Praagh held the position jointly with Sir Robert Helpmann. Under van Praagh's direction, the Australian Ballet made the first of many overseas tours, developed a repertoire of ballets that included works from the established international repertoire as well as commissioned works from Australian and overseas choreographers, and hosted guest appearances by a number of notable dancers including Sonia Arova, Erik Bruhn, Dame Margot Fonteyn and Rudolf Nureyev. While with the Australian Ballet, she also nurtured the development of Australian choreographers including Graeme Murphy, Ian Spink, John Meehan and Leigh Warren. Marilyn Rowe, a protégé of van Praagh, and later Director of the Australian Ballet School said of her mentor: ""Peggy had a five point plan for the development of the Australian Ballet:""   Van Praagh was an advocate for dance education. During her career in Australia, along with Bernard James of the University of New England's continuing education program, she was instrumental in organising a series of summer schools in dance that had a long-lasting influence on dance in Australia. She also helped establish the advocacy body, Ausdance (formerly Australian Association for Dance Education). In 1982, van Praagh was coordinator of dance studies at the Western Australian Academy of Performing Arts, Edith Cowan University, Perth. On 15 January 1990, she died in Melbourne.