WBO champion

On August 11, 2007, the veteran Filipino boxer took on Jhonny González of Mexico for the WBO bantamweight title at the Arco Arena in Sacramento, California, California.^[2] Peñalosa went down in weight and dethroned the Mexican fighter at the 7th round.

The younger fighter appeared to be in control of the match in the early rounds, as he skillfully kept the much shorter Peñalosa away with crisp jabs. Peñalosa stayed patient and continued to walk forward even though he is getting hit by some of the Mexican's punches. In the seventh round, Peñalosa got an opportunity, when Gonzales launched a strong right that missed Peñalosa head. Gonzalez failed to pull his arm back quickly and at that short moment, leaving a hole for the veteran fighter, who then threw a precise and solid left hook to Gonzalez' body. The defending champion fell on the canvas a few moments after receiving the counter-attack; the Mexican tried to get up and fight again but failed to do it remained down on the canvas. This was Peñalosa's second world title in 10 years.^[3]

He defended the title in Quezon City, Philippines by stopping former world title holder Ratanachai Sor Vorapin of Thailand in the eighth round on 6 April 2008.^[4]

This was the second time he fought Sor Vorapin in which Peñalosa prevailed on both encounters.

On February 21, 2009, Peñalosa took on German Meraz of Mexico at the Cebu Coliseum in Cebu City, Cebu, Philippines; the two fought in the main event of the "Battle of the Bantamweights" card. The WBO title was not at stake. The Filipino boxer won the fight by unanimous decision after 10 rounds.^[5]

Events outside the ring

After the Manny Pacquiao-Marco Antonio Barrera rematch in Las Vegas, Peñalosa and Jorge Arce of Mexico nearly figured in a fistfight, according to a report by Philboxing.com. The two boxers crossed their way out of the Mandalay Bay Events Center. The boxing website said its sources revealed that it was Arce who challenged Peñalosa to a fight. Peñalosa was reportedly with his wife Goody and Japanese associate Kosuke Washio when the incident happened. Arce was reportedly irritated when one spectator told him upon seeing Peñalosa that the Filipino boxer is more popular than him. The proud Mexican, the report said, apparently did not like the comments and immediately confronted the Filipino world champion. According to the report, Peñalosa was apparently irked by Arce's actuations and tried to follow the Mexican boxer but was prevailed upon by Goody.^[6]

Farewell fights

However, Peñalosa decided to fight for one more time. Many tough boxers were considered to be his possible next opponent, including Jorge Arce, Daniel Ponce de Leon, Eric Morel and Vic Darchinyan.^[11]

On 13 February 2010, Peñalosa faced Eric Morel (41-2) of Puerto Rico for the interim WBO bantamweight title at the Las Vegas Hilton in Las Vegas, Nevada. The veteran fighter trained at the Wild Card Gym in Los Angeles under the guidance of coach Freddie Roach, along with Filipino prospect Bernabe Concepcion and seven-division world champion Manny Pacquiao.^[12] The bout was part of the card named "Pinoy Power 3", in which four other Filipino boxers fought.^[13] Peñalosa eventually lost the bout by a controversial Split Decision.^[14][15]

At the opening round the Puerto Rican looked to stick and move while Peñalosa took on the role of the aggressor. In the early rounds Morel appeared a bit more active. Peñalosa received a bad low blow in the 2nd round and was given some time to recover. In the 6th round a clash of heads opened a cut over the Filipino's right eyes; a few moments later, another headbutt opened a severe laceration over Peñalosa's left eye. The injury bled profusely during the next rounds, but he was able to hurt the opponent with strong body punches and seemed to take control of the fight. With the bleeding clearly bothering him, the "Fearless" boxer continued to attack as Morel seemed to keep away from him. Peñalosa continued along this way through the championship rounds, while Morel looked to jab and retreat. During the last rounds, Peñalosa fought hard but apparently hadn't done enough to impress the judges.^[16] Two judges scored the fight 115-113 and 116-112 for Morel, while the third and final card scored the bout 113-115 for Peñalosa. FightFan.com had the bout scored 115-113 for Peñalosa.^[17] Some people even said that the Filipino boxer should have won over the Puerto Rican, including his trainer, Freddie Roach, and Manny Pacquiao.^[18]

Following the fight against Morel, Peñalosa stated that he will fight for one last time against Yodsaenkeng Kietmangmee of Thailand on October 10, 2010. The Filipino pugilist also revealed that the proceeds of this match will be given to Z Gorres to help him with his medical expenses.^[19] The event, called "Golpe Golpe na Zamboanga: The Last Hurrah", was held at the Zamboanga City Coliseum.^[20] The former world champion won the bout by TKO in the 4th round.^[21]

Peñalosa finished his 21-year career with a professional record of 55 wins, with 37 knockouts, 8 losses and 2 draws.