Crime rates are very low in Iceland. Immigration is tightly controlled and there are no ethnic and racial conflicts that contribute to social tensions. No murders were reported in the capital city of Reykjavik for the years 1994 through 1997. Nationwide, there was, on average, only one homicide per year over the past decade. There were between 18 and 24 robberies annually during the period 1990 to 1998. While criminality is low in Iceland, it has increased from the 1980s as a result of the influx of drugs. Alcohol and substance abuse play a significant role in the crime that does occur. The article reports on Iceland’s prisons, halfway houses and criminal justice agencies and discusses interviews with prison wardens, correctional officers, psychologists, lawyers, probation officials and various officials from the Ministry of Justice. Table