Peat ecosystems are crucial for maintaining natural balance, carbon sequestration, and water systems, and providing habitats for diverse flora and fauna. However, inadequate policies in the past have resulted in a multi-crisis on peat land. This chapter examines the multifaceted crisis peat ecosystems face in Indonesia, focusing on social, economic, and cultural perspectives. The research employs a qualitative methodology with analytical descriptive and discourse analysis. Drawing on cases from Sumatera and Kalimantan, this study highlights the profound impact of the peat crisis on the livelihoods of communities relying on these ecosystems. The destructive consequences of forest and land fires, coupled with declining water quality, have resulted in habitat destruction, jeopardizing the sustainability of local communities and eroding social cohesion. Additionally, the cultural and spiritual significance of peat ecosystems for specific ethnic groups magnifies the potential loss of cultural heritage and ancestral knowledge related to resource management. Addressing these challenges necessitates holistic and integrated approaches involving local communities, government, and the private sector. Prioritizing social and agricultural improvements, effective fire management, and long-term economic sustainability are essential. The insights from this study provide a basis for policymakers to develop sustainable policies and practices, mitigating the crisis while safeguarding both peat ecosystems and the communities that depend on them.