This study was conducted to determine effects of dietary herbaceous peat on in vitro fermentation and milk production in dairy cows. Ruminal pH, gas production, VFA (volatile fatty acid), Ammonia-N, and rumen degradability were examined by the addition of three times over 0, 1, and 5% herbaceous peat with substrate of timothy hay, and the change of rumen fermentation characteristics were evaluated. In 0, 3, 12 and 24 hours cultivation, all treatments did not show a significant difference but the control at 6 hours appeared significantly lower pH compared to 1 and 5% treatments (p<0.05). The gas production of the treatments significantly increased until 12 hours of cultivation compared to control (p<0.05), the rumen ammonia concentration showed a tendency to increase until 24 hours in all treatment groups, and there was no significant difference between treatments. About the rumen degradability, 5% treatment showed higher rumen degradability in all hours than control and 1% treatment (p<0.05). Meanwhile, for in vivo trial, 16 heads of Holstein lactation dairy cows were selected for experiment for four weeks in order to research the change of milk yield, milk compositions and change of somatic cell counts of lactation dairy cows by herbaceous peat feeding. The milk yield of vitamin C and herbaceous peat treatments (T3) was 25.0 kg but the control was 23.2 kg, herbaceous peat treatment (T1) was 23.1 kg, and vitamin C treatment (T2) was 23.4 kg, so there was linear increase effect of milk yield by T3. The partial significance of the milk (fat, milk protein, lactose, MUN and SNF) and change of somatic cell count before and after experiment by the control and treatments about change of milk and somatic cell counts (p<0.05) were recognized. About change of milk in the first half (1~2 weeks) and latter half (3~4 weeks) during four weeks of experiments period, the herbaceous peat supplement treatments showed a tendency of significant decrease of quality of milk protein and SNF. The control and treatments did not show significant change of blood nutrients (total protein, cholesterol, NEFA, BUN), liver function component (AST, GGT) and minerals (Ca, P, Mg) before and after experiment. In summary, it is judged that herbaceous peat feeding for lactation dairy cows would be recommendable based on the results of milk, somatic cell count physiologically.