Milled peat must be dried for the production of peat fuel briquettes. The current trend in the creation of drying technologies is the intensification of the dehydration process while obtaining a high-quality final product. An increase in the temperature of the drying agent, above 300 °C, significantly accelerates the reaching of the final moisture content of the peat. In the final stage, it is also accompanied by partial thermal decomposition of the solid phase. Its first stage, which is the decomposition of hemicellulose, contributes to a decrease in weight and an increase in the caloric content of the dry residue. The development of high-temperature drying modes consists of determining the temperature and velocity of the drying agent, wherein the duration of the material reaching the equilibrium moisture content will be minimal and the temperature of the material will not rise above the second-stage decomposition temperature of cellulose. This problem can be solved by the mathematical modeling of the dynamics of peat particles drying in the flow. The article presents a mathematical model of heat and mass transfer, phase transitions, and shrinkage during the dehydration of milled peat particles. The equations of the mathematical model were built based on the differential equation of mass transfer in open deformable systems, which, in the absence of deformations, turns into the known equation of state. A numerical method for implementing a mathematical model has been developed. The adequacy of the mathematical model is confirmed by comparing the results of numerical modeling with known experimental data.