Peatlands are dominant sources of dissolved organic matter (DOM) to boreal inland waters and play important roles in the aquatic carbon cycle. Yet before peat-derived DOM enters aquatic networks, it needs to pass through peat-stream interfaces that are often characterized by transitions from anoxic or hypoxic to oxic conditions. Aeration at these interfaces may trigger processes that impact the DOM pool, and its fate downstream. Here we experimentally assessed how the aeration of iron-and organic-rich mire-waters influences biodegradation, particle-formation, and modification of DOM. In addition, we investigated how suspended peat-derived particles from mires may influence these processes. We found that within 5 days of aeration, 20% of the DOM transformed into particulate organic matter (POM). This removal was likely due to combination of mechanisms including coprecipitation with oxidized iron, aggregation, and DOM-adsorption onto peat-derived particles. Peat-derived particles promoted microbial activity, but biodegradation was a minor loss mechanism of DOM removal. Interestingly, microbial respiration accounted for only half of the oxygen loss, suggesting substantial nonrespiratory oxygen consumption. The differences observed in DOM characteristics between anoxic and aerated treatments suggest that hydrophilic, aromatic DOM coprecipitated with iron oxides in aerated samples, and the corresponding C:N analysis of generated POM revealed that these organic species were nitrogen-poor. Meanwhile, POM formed via adsorption onto peat-derived particles generated from nonaromatic DOM and more nitrogen-rich species. Hence, selective removal of DOM, dissolved iron, and thus oxygen may be important and overlooked processes in mire-dominated headwater systems. Plain Language Summary Substantial amounts of dissolved organic matter are discharged from boreal peatlands into small streams and delivered to downstream rivers and lakes, impacting water quality, freshwater ecology, and the aquatic carbon cycle. About half of this dissolved organic matter is processed and removed during downstream transport, mainly via degradation and CO 2 emission, but also through particle formation and sedimentation. Less is known about the processing in upstream systems, where peat-water emerges into small streams. These peat-stream interfaces are characterized by rapid transitions from anoxic to oxic conditions. Since oxygen exposure may promote both microbial activity and chemical reactions, e.g., coprecipitation with iron, these interfaces might be critical locations for dissolved organic matter transformations. Here we experimentally study microbial and nonbiological processing of dissolved organic matter when anoxic mire-waters are aerated. We also assess how particles found in the peat-water may stimulate these processes. Our results suggest significant nonbiological particle formation and modification of the dissolved organic matter pool when anoxic waters from peatlands are first delivered to streams. In addition, we find that natural pa...