Permafrost thaw is projected to reinforce climate warming by releasing large stocks of stored carbon. Rewilding northern high latitude regions with large herbivores has been proposed as a climate mitigation strategy to protect frozen soils and increase ecosystem resilience to climate warming. We explored the impact of summer reindeer density on subarctic peatlands by comparing 17 peatlands differing in reindeer density in Fennoscandia. We used a combination of high-resolution image analyses and field assessments along 50 transects to assess microtopography, surface water cover, vegetation, summer albedo, permafrost presence, soil temperature, soil nutrients and snow depth. Our results show that high summer reindeer densities fragment the characteristic bumpy topography of the peatlands, reducing the insulating soil properties and the probability of keeping permafrost in elevated hummocks. As a result, waterlogged lawns with surface water increase in size and reduce summer albedo. Furthermore, high reindeer density peatlands were associated with an increase in tall inedible shrubs and thicker snow layers. These changes may favor summer warming and reduce winter cooling of the soil thus accelerating permafrost loss. Our results suggest that high reindeer densities may reduce resilience of the peatland permafrost to climate warming. High densities of large herbivores will likely have different effects in well-drained uplands, but in the lowlands we studied, the complex cascading effects of summer trampling may well offset any climate-protection gained by browsing. Optimal use of wildlife management to mitigate global warming will thus require tuning herbivore densities to different ecosystem types across high northern landscapes.