While Southeast Asia has enjoyed relatively good air quality in recent years due to wetter conditions and reduced land-use changes, the return of transboundary haze signals an urgent need for action. This commentary develops a compelling case for breaking the vicious cycle of haze and climate change, emphasizing how peatland degradation and fires not only worsen air pollution but also accelerate global warming. Highlighting the interconnectedness of environmental, economic, and social impacts, the authors call for inclusive, on-the-ground solutions, including carbon pricing mechanisms and peatland restoration projects, to incentivize conservation and mitigate future crises. The analysis underscores the importance of regional cooperation and innovative financing models to achieve a “Haze-Free ASEAN” while addressing broader climate goals.