Officials say the attack in the north-western city is over, with all the attackers killed. Seven militants took part in all, according to the army.
Scores of survivors are being treated in hospitals as frantic parents search for news of their children.
The attack - the Taliban's deadliest in Pakistan - has been widely condemned.As he hid under a desk, he saw his friends being shot, one in the head and one in the chest. Two teachers were also killed.
Funerals were under way in Peshawar on Tuesday evening
Victims were carried out of Peshawar hospitals directly in their coffins
Hundreds of Taliban fighters are thought to have died in a recent offensive in North Waziristan and the nearby Khyber area.
US President Barack Obama said terrorists had "once again shown their depravity" while UN Secretary General Ban Ki-moon said it was "an act of horror and rank cowardice".
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Anxious family members crowded around Peshawar hospitals
Troops helped evacuate children from the school
Anxious family members crowded around Peshawar hospitals
Troops helped evacuate children from the school
All seven of the attackers wore suicide bomb vests, he said. Scores of people were also injured.
It appears the militants scaled walls to get into the school and set off a bomb at the start of the assault.
Children who escaped say the militants then went from one classroom to another, shooting indiscriminately.
One boy told reporters he had been with a group of 10 friends who tried to run away and hide. He was the only one to survive.
Others described seeing pupils lying dead in the corridors. One local woman said her friend's daughter had escaped because her clothing was covered in blood from those around her and she had lain pretending to be dead.
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Deadly attacks in Pakistan16 December 2014: Taliban attack on school in Peshawar leaves at least 141 people dead, 132 of them children
22 September 2013: Militants linked to the Taliban kill at least 80 people at a church in Peshawar, in one of the worst attacks on Christians
10 January 2013: Militant bombers target the Hazara Shia Muslim minority in the city of Quetta, killing 120 at a snooker hall and on a street
28 May 2010: Gunmen attack two mosques of the minority Ahmadi Islamic sect in Lahore, killing more than 80 people
18 October 2007: Twin bomb attack at a rally for Benazir Bhutto in Karachi leaves at least 130 dead. Unclear if Taliban behind attack
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