Tropical peatlands are critical for climate change mitigation and biodiversity conservation globally, yet in many parts of the world, they are being destroyed for anthropogenic uses with catastrophic environmental effects. Despite Peru’s status as home to the second largest area of peatlands in Latin America, significant gaps persist in understanding both the geographical distribution and the socio-political landscapes that shape them, exposing these ecosystems to risk of irreversible damage. Focusing on the Imiria region in Ucayali, Peru, where newly discovered peatlands intersect with Indigenous communities, this study, through participatory methods and qualitative analyses, explores the complex socio-political dynamics posing risks to these ecosystems. Our findings highlight a range of threats: (a) the emergence of new actors and land uses, including Mennonite colonies, coca settlements, and illegal resource extractors; (b) challenges posed by the state, encompassing changing legislation, a limited understanding of Indigenous needs and power dynamics, alongside insufficient strategies for peatland science and protection; and (c) a southward shift of socio-political and ecological problems towards peatland areas. We discuss how these dynamics exacerbate degradation risks and undermine Indigenous sovereignty, hindering conservation efforts. The study suggests pathways for ethical peatland conservation and emphasizes the need for further research in Ucayali, Peru.