Peonies prefer rich, well-drained soil. Choose a site where they won't have to compete with aggressive root systems, such as trees or shrubs. Keep in mind that the plant will get 2-3 feet wide and tall. Leave it plenty of room so the plant can get good air circulation and light. Dig the area at least 12 inches deep, loosening the soil, breaking up clods and mixing in composted manure.
Peonies prefer neutral to slightly alkaline soil.
Mix 1-2 cups of bone meal into the soil that will be below the root system. Fill the hole halfway with your soil mixture before placing the peony. The eyes are the growing points and should be red or pink and firm. Finish filling the hole with your soil mixture and water well. Plant the peony at the same level it was growing in the container.