The Dowries Farm restoration project is the second in Inverclyde to receive funding from Peatland ACTION.
A separate three-year project to restore 788 hectares of peatland at Duchal Moor started in January and will finish in 2026.
Work began on the smaller Dowries Farm peatland restoration in early January and is now complete.
Both projects have been supported by the Glasgow and Clyde Valley (GCV) Green Network's Clyde Peatland's initiative, which aims to increase the rate and scale of peatland restoration across the whole city region.
Councillor Michael McCormick, convener of the Environment and Regeneration Committee said: "It is great news that the restoration of peatland at Dowries Farm is complete and it has been restored to its natural state.
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"This was a smaller project than the one at Duchal Moor which is ongoing.
"We have set out our ambitious plans to reach net zero greenhouse gas emissions by 2045, in line with Scottish Government targets, and this project will go a long way towards us achieving that.
"Reducing carbon emissions is vital and I am delighted this project will help with that."
Inverclyde Council was given a £103,981 grant from Peatland ACTION to carry out the work at Dowries Farm.
Much of the peatland in Inverclyde had drainage ditches cut into it around 60 years ago to create moorland hunting estates.
Now, it is more widely understood that a restored peatland can reduce the amount of greenhouse gases emitted into the atmosphere, slow down water flow, prevent flooding and provide habitats for a range of wildlife, which improves biodiversity.
Giulia Spilotros, GCV Green Network's Clyde Peatland Officer, added: "Not only will this project deliver huge carbon reduction benefits, it will also provide biodiversity gains by helping an array of species that make peatland habitats their home.
"The restored site will also improve water quality and lock in rainwater in downpours helping to prevent localised flooding."
Much of Scotland's peatland is in poor condition and requires suitable management or restoration.
Peatland ACTION is funded by the Scottish Government and delivered In partnership with NatureScot with Scottish Water, Forestry & Land Scotland, Cairngorms National Park Authority and Loch Lomond & The Trossachs National Park Authority.
