•First pore-scale simulation in peat and 3D characterization of peat pore space.•Good match between pore network model and direct numerical simulation results.•Calculated hydraulic conductivity (K) and dispersivity matched measured values.•K and effective diffusion coefficient decrease with depth in peat soil.•K is locally isotropic, but becomes anisotropic after upscaling to field-scale. Micro-scale properties of peat pore space and their influence on hydraulic and transport properties of peat soils have been given little attention so far. Characterizing the variation of these properties in a peat profile can increase our knowledge on the processes controlling contaminant transport through peatlands. As opposed to the common macro-scale (or bulk) representation of groundwater flow and transport processes, a pore network model (PNM) simulates flow and transport processes within individual pores. Here, a pore network modeling code capable of simulating advective and diffusive transport processes through a 3D unstructured pore network was developed; its predictive performance was evaluated by comparing its results to empirical values and to the results of computational fluid dynamics (CFD) simulations. This is the first time that peat pore networks have been extracted from X-ray micro-computed tomography (µCT) images of peat deposits and peat pore characteristics evaluated in a 3D approach. Water flow and solute transport were modeled in the unstructured pore networks mapped directly from µCT images. The modeling results were processed to determine the bulk properties of peat deposits. Results portray the commonly observed decrease in hydraulic conductivity with depth, which was attributed to the reduction of pore radius and increase in pore tortuosity. The increase in pore tortuosity with depth was associated with more decomposed peat soil and decreasing pore coordination number with depth, which extended the flow path of fluid particles. Results also revealed that hydraulic conductivity is isotropic locally, but becomes anisotropic after upscaling to core-scale; this suggests the anisotropy of peat hydraulic conductivity observed in core-scale and field-scale is due to the strong heterogeneity in the vertical dimension that is imposed by the layered structure of peat soils. Transport simulations revealed that for a given solute, the effective diffusion coefficient decreases with depth due to the corresponding increase of diffusional tortuosity. Longitudinal dispersivity of peat also was computed by analyzing advective-dominant transport simulations that showed peat dispersivity is similar to the empirical values reported in the same peat soil; it is not sensitive to soil depth and does not vary much along the soil profile.