The ever-increasing worldwide production of peanuts has led to a large accumulation of shells. The usage of these residues has been limited due to their high lignin content. Vermicomposting was used to stabilize the peanut shells (PS). Chopped PS was mixed with cow dung at a ratio of 60:40 (on a dry weight basis). Eisenia fetida was selected. The experiment was classified into two treatments: the control, which contained 1000g of the mixed substrates without earthworms, and the treatment with earthworms, which contained the mixed substrates and 120 individuals of Eisenia fetida. The duration of the experiment was 48 days. The C/N ratio of the initial substrate was approximately 37.00. The C/N ratio in the treatment with earthworms was less than 15.00 on day 48, whereas it was 23.17 in the control. This suggested that earthworms stimulated the decomposition of shells. The mortality rate of Eisenia fetida was 19% by the end of the experiment. Cocoons and juvenile earthworms were observed during vermicomposting, indicating that the earthworms adapted to the high lignin content of the shells. The Shannon-Wiener index of fungi in the initial mixed material was 1.33. By the end of the vermicomposting, the values were 2.59 and 1.66 in the treatment with earthworms and in the control, respectively. This indicated that the diversity of fungi was promoted by the presence of earthworms. A significant increase in the abundance of Rhodococcus, Arthrobacter, unclassified_f_Peptostreptococcaceae, Sporosarcina, Cercophora, unclassified_c_Dothideomycetes, Preussia and unclassified_f_Lasiosphaeriaceae in the treatment with earthworms was observed.