Set the pepper seedlings outside in an area with bright but indirect sunlight that is protected from strong winds. Leave the plants outside during the day and bring them at night or if frost is expected. Gradually increase their sun exposure over a seven-day period leading up to transplanting, so the seedlings adjust to outdoor growing conditions.
Spread 2 cups of 16-16-8 fertilizer over every 50 square feet of pepper bed. Cover the fertilizer with a 2 inch layer of compost. Mix the compost and fertilizer into the top 6 to 8 inches of soil with a spade or power tiller.
Dig a planting hole for each pepper seedlings. Dig holes to the same depth as the seedling pot but make them two to three times as wide. Space the holes 18 inches apart in rows set 18 to 24 inches apart.
Squeeze the sides of the pot to loosen the soil and root ball inside. Turn the pot on its side and slide the pepper out and into your hand. Only handle the seedling by the root ball or topmost leaves so you don't damage the stem.
Set the root ball in the prepared hole so it is at the same depth it was growing in the container. Fill the hole with soil and firm it around the roots.
Water the pepper seedlings immediately after transplanting so the soil settles around the roots. Provide enough water to moisten the top 6 inches of soil.