Peatlands in Europe have declined dramatically both in surface and in quality. At the same time, these wetlands fulfil essential ecosystem services such as water purification, biodiversity conservation and carbon retention. Restoration of degraded peatlands is therefore key to enhance these services. This chapter describes the hydrological and ecological functioning of undisturbed peatlands, as well as changes that have occurred once humans started using the landscape more intensively. Effects of interferences at the landscape level are described, together with subsequent changes within peatlands. The cumulative effects of such changes on local site conditions are called land-use legacies, which have significant impacts on restoration prospects of now degraded peatlands. Various restoration targets are summarized, and the consequences of different choices for landscape planning and management are discussed.