The white-coned Peeps display depicts a Klu Klux Klan march on Washington.
"As a parent, I think it's ridiculous," school parent Alfred Benton said. "I don't think it should be at the school or the front office."
Some students support their classmates' right to make such a controversial display. "People who take offense need to accept it is a part of history whether they like it or not," said Osbourn student Calla Feucht.
"I hope most peple would look at it as a piece of history. We can't deny history, but I can see some people being offended," added Osbourn senior Jonah Higgenbottom, who took the class last year and made his own (non-KKK) Peeps project.
That's not the point, according to parent Vicki Henderson, who called the display "despicable."
"Some people want to know that part of their history... but it's degrading to others," she told News4.
The school system said that the Klu Klux Klan Peeps are a part of a history class project, a presentation using cardboard and Peeps that is done every year at the school. They also said that they have not received any complaints about the display and that there are no plans to take it down.
Other scenes on display show Peeps at Pearl Harbor and Peeps at Iwo Jima.