In this paper, we evaluate the long-term climate sensitivity and global carbon (C) cycle implications of northern peatland C dynamics by synthesizing available data and providing a conceptual framework for understanding the dominant controls, processes, and interactions of peatland initiation and C accumulation. Northern peatlands are distributed throughout the climate domain of the boreal forest/taiga biome, but important differences between peatland regions are evident in annual temperature vs. precipitation (T-P) space, suggesting complex hydroclimatic controls through various seasonal thermal-moisture associations. Of 2380 available basal peat dates from northern peatlands, nearly half show initiation before 8000 calendar years (cal years) B.P. Peat-core data from sites spanning peatland T-P space show large variations in apparent C accumulation rates during the Holocene, ranging from 8.4 in the Arctic to 38.0 g C m⁻² a⁻¹ in west Siberia, with an overall time-weighted average rate of 18.6 g C m⁻² a⁻¹. Sites with multiple age determinations show millennial-scale variations, with the highest C accumulation generally at 11,000–8000 cal years B.P. The early Holocene was likely a period of rapid peatland expansion and C accumulation. For example, maximum peat expansion and accumulation in Alaska occurred at this time when climate was warmest and possibly driest, suggesting the dominant role of productivity over decomposition processes or a difference in precipitation seasonality. Northern peatland C dynamics contributed to the peak in atmospheric CH₄ and the decrease in CO₂ concentrations in the early Holocene. This synthesis of data, processes, and ideas provides baselines for understanding the sensitivity of these C-rich ecosystems in a changing climate.