In Latvia and elsewhere in the world, peat is used in much smaller amounts than it would be economically justified even without compromising the natural values. This article deals with peat resources and their application areas. In our study, peat is viewed as a valuable natural resource and base material for various substances such as drugs, food additives, sorbents and others (even as material for textiles). In this article, the most typical application areas of peat and of its components are characterized and described. Even though peat is commonly used as raw material in heating or power generation, its applications go far beyond this area. For instance, raised bog peat can be used for mummification purposes – it was widely used in religious sacrifice rituals in primitive cultures. The fibre of peat can be used as yarn, and characteristics of peat yarn are even better than wool characteristics; it has natural abilities to protect human skin from UV radiation. In this manner, peat is also used as building material. One of the most significant components of peat mass is a humic substance, chemical properties of which allow using peat in medicine and food industry. During this study, the authors have concluded that peat is priceless natural treasure with a wide area of applications and we can significantly increase the yield of peat without any threat to nature or natural diversity; actually, it is possible to find application for every single piece of peat material.