Prepare the cranberries
Use a food processor or blender to finely chop the cranberries. Mix them with granulated sugar in a bowl, cover, and refrigerate for 1 hour to macerate.
Mix the cream cheese
In a large bowl, beat softened cream cheese and powdered sugar until creamy. Stir in vanilla extract.
Combine the salad
Gently fold the whipped topping into the cream cheese mixture until smooth. Add the macerated cranberries, mini marshmallows, and pecans (if using) and mix until well combined.
Chill and serve
Transfer the mixture to a serving dish, cover, and refrigerate for at least 2 hours before serving. Garnish with orange zest or additional pecans if desired.