While building some drawers for added storage under my workbench, I ran out of the 1⁄4" hardboard I normally use for the drawer bottoms. Looking around the shop for a suitable substitute, I found some 1⁄4" pegboard. It seemed sturdy enough for my purposes, so I gave it a shot.
The white melamine surface of the pegboard helps "lighten up" the inside of the drawers, plus it's easier to keep clean, but there's another big advantage to using pegboard. You can make use of the holes by adding dividers for the drawers. This helps keep things organized, as you can see in the photo above. On shallow drawers, you can use 1⁄4" dia. dowels on the bottom of the partitions to locate them in the holes. On deeper drawers, I've found that #8 x 3⁄4" roundhead woodscrews with washers work to fasten them.