Pauline Gray, 66, bought the Haircare salon on Mountsteven Avenue, Walton, in 1981 and has been running it since.
Her daughter, Michelle Gray, 43, a fully qualified beautician, joined the business just as they celebrated 25 years.
The mother-daughter duo say they are “proud” of their achievement and hope they continue offering their service to the local community.
They marked the occasions with balloons and sweets this week.
(Pauline and Michelle Gray at the salon a few years ago)
Speaking to Peterborough Matters, Pauline Gray said: "This week we celebrated 40 years of our salon. We bought the shop in 1981 and over the years it has been a great success.
“My daughter, when she was 15 years old, went to college to train in beauty and hair and she came back and joined me just as we marked 25 years of the salon.
“It has been a good journey and we still have some lovely customers we made 40 years ago. But sadly over time, we have also lost customers.
“The pandemic has been tough but we survived it - the government support has been helpful. It still is a challenging time for our industry. We had plummeted in our takings.
"But we are happy to be back and are still taking all the Covid precautions in our premises. We do our Covid tests twice weekly and that makes a lot of our elderly clients feel safe.
“In the last four decades we organised quite a few charitable events as well, including taking part in marathons and a Christmas raffle every year to support various charities.
“We are immensely proud of our work and journey.
“It has been amazing to see the difference we made to the local community. All through the week as we marked the occasion, customers have been coming through to drop off lovely messages and cards and it means a lot.
"My children went to the local Walton schools and my customers have seen them grow up.
“We are very proud of our achievement - it's a big moment for anyone to keep the business on for 40 years.
“If it was not for Covid we would have done a big party but we just had balloons and sweeties and a free raffle with £100 of wine and chocolates and hair products.
“But yes, we have enjoyed our journey and look forward to keep going.”