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What is the difference between tree, intersectional, and herbaceous peonies?

Answer

Tree peonies have woody stems that stay above ground all year.  Their leaves are deciduous and drop every fall. 
 
An intersectional peony is a cross between the tree peony and the herbaceous peony.  The flowers look like those of a tree peony, but the stems die back to the ground each fall.
 
Herbaceous peonies are the most common type of garden peony and compose the majority of the peonies in the Peony Garden.  Their stems die back to the ground each winter.