Climate warming induced wildfires are rapidly increasing at high latitudes, yet their climate impacts remain poorly understood. These deeply smoldering fires may release long-stored carbon and thus perturbate the global carbon cycle and further emit light-absorbing carbonaceous particles enhancing snow and ice melt after deposition. We newly investigate the carbon isotopic and light-absorbing characteristics of carbonaceous particles produced in laboratory combustion experiments on Arctic-boreal peats and compare these with biomass from boreal forest and savanna environments. We provide the first observational evidence that boreal and especially Arctic peat smoldering may release millennial-aged carbon into the atmosphere, which upsets radiocarbon-based source attribution, separating fossil-fuel-derived sources from modern biomass. Moreover, above- and below-ground material combust differently, and hence the fraction of modern carbon (F¹⁴C), i.e., the average age, of the original biomass and the produced carbonaceous particles may differ. Furthermore, we show that peat smoldering produces significant amounts of Brown Carbon, which absorbs light at a similar magnitude to Black Carbon in these samples. Our results indicate that the increasing number of Arctic-boreal peat fires may exacerbate Arctic warming more than previously estimated.