Peat is a substance formed due to the slow rate of plant material decay. This decay is due to water buildup in marshy and swampy regions and is commonly present in Scotland. This substance plays a significant role in the whisky manufacturing equation since it imparts scotch with a unique aroma and flavor of smoke.
On the other hand, peated is placed before the word whiskey, forming the phrase peated whiskey, which describes whiskey containing smoky flavors and aroma associated with peat.