Latvia relies on its peat resources economically, environmentally, and culturally, but with increasing pressure from climate targets and biodiversity commitments, there is a growing urgency to rethink how degraded peatlands are managed. This study evaluates various restoration and after-use strategies for extracted peatlands by applying an integrated Life Cycle Sustainability Assessment (LCSA) framework that combines environmental (LCA), economic (LCC), and social (S-LCA) evaluation dimensions. A Multi-Criteria Decision Analysis (MCDA) approach using the TOPSIS method is employed to compare ten after-use scenarios, including renaturalization, afforestation, water body creation, wetland crop cultivation, and renewable energy installations. The analysis highlights trade-offs across sustainability dimensions and supports informed land-use planning by identifying which options deliver the most balanced performance. The proposed method provides a structured and adaptable tool for policymakers and land managers to guide post-extraction peatland recovery in line with national and EU sustainability goals.