Combine sugar and syrup in a large saucepan. Cook and stir over low heat until bubbly around the edges. Add peanut butter, stir until smooth. Remove from heat.
Add cereal, stir until evenly covered. Spread into greased 9x13 pan.
Microwave butterscotch and chocolate chips in microwave for approx. 1.5 minutes (varies). When chips glisten slightly, they are ready to be stirred together until smooth. Spread over cereal and let cool.