This common disease of peonies is caused by a fungus (Botrytis paeoniae or B. cinerea). Gray mold is most serious in the wet, cool conditions of early spring. Fungal growth on the stems, leaves, and flowers causes spotting, blackening, and decay. The fuzzy growth that forms on infected tissue is composed of millions of tiny spores. This fungus is spread by wind, splashing rain or water, or contaminated plants, soil, and tools. The fungus forms small black pellets that survive in plant debris and in the soil for many years.
Remove and destroy all decayed or wilting plant parts. Clean up plant debris during the growing season and again in the fall. In the spring, spray emerging shoots with a fungicide containing mancozeb or zineb. Repeat the spray 2 more times at intervals of 5 to 10 days. Respray if the weather continues favorable for disease.