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|“|| Kate: "Stop pitching and tell me what you want."|
Peter: "[...] I know you want to get the family back together again-- the return of the Argents to their glorious power. But, you know, you can't go back until you can exhibit absolute and total control. I can teach you."
Kate: "So, you're willing to teach me in order to get what you want... which is what?"
Peter: "Obviously, I want my money back."
Kate: "Mmmm. That's not it. Maybe part of it, but that's not all you want."
Peter: "I need the money, yes... But, I'll admit, money only gets you so far. What I want is what I've always wanted-- power."
Kate and Peter presumably met at some point in the early 2000s, when she first met Peter's nephew Derek Hale, whom Kate seduced in order to learn the secrets of the Hale Family. Kate ultimately used these secrets to orchestrate the Hale House Fire, which killed the majority of Peter's family and left him with third-degree burns to the majority of his body that were so severe that he was in a coma for six years while he slowly healed.
However, Peter was cognizant throughout his entire coma, giving him over half a decade to stew and plot his revenge against the Argents for decimating his family. When he finally started to wake up and regain his strength, he killed his own niece Laura Hale, who had inherited his sister Talia's Alpha spark after her death, so that he would have the power to create and lead his own pack. He then set out to get his revenge on all those involved in the fire, first taking out Kate's co-conspirators one by one before going after Kate herself, using the fact that he was still believed to be comatose to cloak his identity.
Their battle reached a head in Season 1's Code Breaker, when Peter finally confronted Kate, forcing her to apologize for what she did to the Hale Family in front of Kate's niece, Allison Argent, who had just learned about the supernatural world. He did not accept her apology-- instead, he slashed Kate's throat with his claws in the Hale House ruins, seemingly killing her.
It wasn't until a year later that it was discovered that Kate had, in fact, survived the attack, and that Peter, who was then an Alpha, had actually transformed her into a Werejaguar. Peter learned this shortly before the robbery of the Hale Vault by the Benefactor's cohort and decided to forge an alliance with Kate in hopes of uniting against a common enemy-- Scott McCall, whom Peter mistakenly believed stole the power he believed was rightfully his, and whom Kate irrationally blamed for the decimation of the Argent Family. Their partnership surprised even Kate, who admitted that Peter was someone she never thought she would trust. Unfortunately for them both, their plan to have the McCall Pack kill Scott (allowing Peter to somehow steal his Alpha powers) ultimately failed, with Peter being defeated in battle by Scott, sedated with yellow wolfsbane, and imprisoned in Eichen House, while Kate was forced to go on the run while being pursued by her brother, Chris Argent, and the Calavera Family of Hunters. As far as it is known, Kate and Peter have not interacted since the events of Season 4's Smoke and Mirrors.
Throughout Teen Wolf Edit
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Keep in mind that, while Kate actively hunted Peter for the majority of the first season, she did not actually know his identity until the season finale; until that point, all she knew was that there was a new Alpha in town who was running with at least two Betas. As a result, Kate did not realize it was actually Peter she was hunting until just prior to her death.
In Magic Bullet,
In The Tell,
In Heart Monitor,
In Night School,
In Wolf's Bane,
In Code Breaker,
- Peter was the second Hale to have a connection with Kate after his nephew, Derek. However, while Derek was unaware of Kate's true identity and intentions toward his family while she seduced him prior to the start of the series (and again in Season 4 after she manipulated him into allowing her entry into the Hale Vault after he had been temporarily de-aged and lost his memories of Kate's betrayal years earlier), Peter had full knowledge of who he was working with when he teamed up with her in Season 4.