Mongolia is an important peatland distribution area in the world. Over the past few decades, Mongolian peatlands have undergone significant degradation due to climate change and human activities, yet there remains substantial uncertainty about the impacts of Mongolian peatland changes on regional environment and human society. Here, compiling the data of peatland distribution, climate, human activity, as well as the permafrost, we systematically review the distribution, changes, and the ecosystem service values of the Mongolian peatlands in the face of climate warming and intensifying human activities. The current data show that the total area of peatland in the Mongolian is 15500~27000 km2, and most of the peatlands are distributed in permafrost regions, while the accuracies of these maps were not assessed. In addition to climate warming, overgrazing, mining activities, and transportation, we suggest permafrost degradation also poses significant threatens on the peatlands. Although the importance of Mongolian peatlands has been recognized, the ecosystem service values, including water provision, habitat quality, carbon fixation, soil conservation, and wind erosion prevention largely remain unknown. Currently, efforts have been made to protect the Mongolian grassland, but there are no specific measures to combat peatland degradation. To better understand the changes and roles of peatland ecosystems in regulating regional development, we propose three research directions for future studies: 1) produce a detailed map of peatland distribution based on field survey data, new remote sensing data, and new algorithms; 2) Unveil the mechanisms underlying the interaction of peat, vegetation, and permafrost; 3) Evaluate the ecosystem services of Mongolian peatlands. These knowledges are the scientific foundation to propose and implement measures to protect, maintain, and sustainably utilize peatlands in Mongolia.