This paper analyses the reform undertaken by Iceland to avert a looming crisis and restore fish stocks to sustainable levels. The paper outlines the process involved in designing and implementing this reform. It also reflects on the challenges encountered and the environmental, economic and social impacts of the reform. It concludes by discussing some wider lessons learned for other governments seeking to tackle similar environmental problems. This country study draws on the 2017 OECD report The Political Economy of Biodiversity Policy Reform.