"Many of the children and families believe it has changed their lives, they're very happy, they feel relieved," said lead researcher Mimi Tang.
"These findings provide the first vital step towards developing a cure for peanut allergy and possibly other food allergies."
Almost three in every 100 Australian children have a peanut allergy.
"We focused on peanut allergy because it is usually lifelong and it is the most common cause of death from food anaphylaxis," Associate Professor Tang said.
Further research is now required to confirm whether patients can still tolerate peanuts in the years to come.
"We will be conducting a follow up study where we ask children to take peanut back out of their diet for eight weeks and test them if they're tolerant after that."
Assoc Prof Tang warned about trying the treatment at home.
"Some families might be thinking about trialling this at home and we would strongly advise against this, in our trial some children did experience allergic reactions, sometimes serious reactions.
"For the moment this treatment can only be taken under the supervision of doctors as part of a clinical trial."
- AAP