I don't know, sorry. They do dig in soil and literally bite it to make it soft to enable them to dig (I've stood and watched my girls when they're in the garden so I know that as a fact). But that's soil, not peat. Peat is a different composition to soil so I don't know. Probably best off getting something guaranteed to be more rabbit friendly/non-toxic. (Although I don't think it would be toxic but wouldn't actually like to say it's not, if you get me).