The invention relates to a treatment method of a peat soil dam foundation. For the dam section of a clay core-wall rockfill dam, gravels are scattered so as to enhance bearing capability, a pump pit is arranged for draining, and consolidation grouting and curtain grouting are carried out so as to ensure the stability and permeability of the dam foundation. For the dam section of a homogeneous soil dam, a pipe culvert and a draining ditch are buried, peat soil is cleared after draining and airing, a transition section is built after a residual soil layer is air-dried, and finally, ramming is carried out. For the dam section of an earth-rock dam, a cofferdam is built at the upstream section for blocking water, a draining open canal is dug for drainage, and rock powder is scattered for increasing soil strength; and finally, rock is thrown at the downstream side, and a gallery is built, so that clearing equipment can be driven into marshland for clearing the peat soil. According to the treatment method, the digging and outward transporting of the peat soil are facilitated, and the dam foundation meets seepage preventing requirements; the investment of special desilting equipment and the arrangement of a seepage preventing wall are avoided, and at the same time, large-area soil replacement is avoided; and when construction quality is ensured, the construction cost is greatly reduced.