Residuation has become an important concept in the study of algebraic structures and algebraic logic. Relation algebras, for example, are residuated Boolean algebras and residuation is now recognized as a key feature of substructural logics. Early work on residuation can be traced back to studies in the logic of relations by De Morgan, Peirce and Schröder. We know now that Peirce studied residuation enough to have listed equivalent forms that residuals may take and to have given a method for arriving at the different permutations. Here, we present for the first time a graphical treatment of residuation in Peirce’s Beta part of Existential Graphs (EGs). Residuation is captured by pairing the ordinary transformations of rules of EGs—in particular those concerning the cuts—with simple topological deformations of lines of identity. We demonstrate the effectiveness and elegance of the graphical presentation with several examples. While there might have been speculation as to whether Peirce recognized the importance of residuation in his later work, or whether residuation in fact appears in his work on EGs, we can now put the matter to rest. We cite passages where Peirce emphasizes the importance of residuation and give examples of graphs Peirce drew of residuals. We conclude that EGs are an effective means of enlightening this concept.