English is acknowledged worldwide as a mode of communication. However, due to the absence of realistic practicing scenarios, students learning English as a foreign language (EFL) typically have limited chances to converse and share feedback with others. In this paper, we propose PEEP-Talk, a real-world situational dialogue-based chatbot designed for English education. It also naturally switches to a new topic or situation in response to out-of-topic utterances, which are common among English beginners. Furthermore, PEEP-Talk provides feedback score on conversation and grammar error correction. We performed automatic and user evaluations to validate performance and education efficiency of our system. The results show that PEEP-Talk generates appropriate responses in various real-life situations while providing accurate feedback to learners. Moreover, we demonstrate a positive impact on English-speaking, grammar, and English learning anxiety, implying that PEEP-Talk can lower the barrier to learning natural conversation in effective ways.