The title derives from peshat - the plain meaning of the text - and derash - the interpreted or homiletical meaning of the text in Rabbinic Judaism. The book is divided into two halves. The first half chronicles the history of rabbinic exegesis from ancient to renaissance times. The issue dealt with is the development of methodologies. The ancient rabbis were dealing with their predilection for justified law - that is, interpreting the Bible to justify the traditions codified in the foundation document of Rabbinic Judaism, the Mishnah (and the later Talmud). The second half of the book develops a theology, compatible with orthodox tradition, that accounts for the tension between peshat and derash.
This book is definately densely written, a mere 173 pages including appendices. It assumes a knowledge of the primary texts of Rabbinic Judaism, the medieval commentators (Rashi, Rashbam, Rambam, Ramban, Ibn Ezra), and medieval law codes. Before attempting this book, I recommend first becoming familiar with these sources. Barry Holtz's Back to the Sources is a good book to gain familiarity with these sources.
Halivni is definately in same intellectual vein as the more famous Jacob Neusner. No writer has produced more works on Judaism since Rabbi Judah Hanasi than Neusner. Like Neusner, Halivni writes in a secular scholarly context, however, he exhibits extreme sensitivity toward traditional belief and orthodoxy.