In a large bowl, Cut the butter into the flour and 1/4 cup sugar until the mixture resembles coarse crumbs; pat mixture into the bottom of a 9x13 inch baking dish. Bake in preheated oven for 15 to 18 minutes or until lightly browned. Let cool to room temperature.
In a large bowl, beat the cream cheese and 1/2 cup sugar until smooth. Fold in half of the whipped topping. Spread mixture over cooled crust.
In the same bowl, Mix pudding according to package directions. Spread over cream cheese mixture.
Top with remaining whipped topping. Chill in refrigerator.