Palsas are peat mounds with a permanently frozen peat and mineral soil core. They are a typical phenomenon in the polar and subpolar zone of discontinuous permafrost. One of their characteristics is having steep slopes that rise above the mire surface. This leads to the accumulation of large amounts of snow around them. The summits of the palsas are free of snow even in winter, because the wind carries the snow and deposits on the slopes and elsewhere on the flat mire surface. Palsas can be up to 150 m in diameter and can reach a height of 12 m.

Peat is an accumulation of partially decayed vegetation or organic matter. It is unique to natural areas called peatlands, bogs, mires, moors, or muskegs. Sphagnum moss, also called peat moss, is one of the most common components in peat, although many other plants can contribute. The biological features of sphagnum mosses act to create a habitat aiding peat formation, a phenomenon termed 'habitat manipulation'. Soils consisting primarily of peat are known as histosols. Peat forms in wetland conditions, where flooding or stagnant water obstructs the flow of oxygen from the atmosphere, slowing the rate of decomposition. Peat properties such as organic matter content and saturated hydraulic conductivity can exhibit high spatial heterogeneity.