Abstract This report examines recent transformations in Iceland’s security and defence policy, highlight­ing shifts in emphasis, motivations and strategic outlooks. It provides some background on Ice­land’s historical security approach, followed by an analysis of the growing focus on military security in the wake of Russia’s invasion of Ukraine. This includes the strategic significance of the Keflavík Air Base and Iceland’s reliance on the United States within NATO. The report eval­uates Iceland’s engagement in multilateral frameworks, such as NORDEFCO, EU defence cooperation, and bilateral agreements, including recent initiatives with Germany, and considers the implications of potential EU policy shifts and public opinion. Key questions addressed include Iceland’s evolving role in the Euro-Atlantic secu­rity architecture and the challenges posed by its geographic position, such as the GIUK gap. The report concludes with an assessment of Iceland’s expanding security partnerships, the role of the US as a security guarantor, and the emerging diversification of defence cooperation with Euro­pean states, including Germany, the Nordic and Baltic states. This may offer insights into poten­tial strategic directions for the near future. Final­ly, policy recommendations for German, Nordic and European policymakers are presented. Abstract 3