We review extensive peatland tree-ring chronologies from northern Europe covering major parts of the Holocene. Long distance cross-matches (correlograms) and significant positive correlation point to larger-scale climate signals. Subfossil peatland trees can be used for detailed palaeoclimatic and palaeohydrological reconstructions. Warm/dry conditions are favourable for peatland tree growth, but may turn peatlands from carbon sinks to carbon sources.