Although there have never been as many young, promising and motivated athletes as can be found in Iceland today, there are important issues for the sport to address if its current success is to continue. The authors’ aims are to describe athletics in Iceland and provide insight and ideas for others interested in the development of the sport. They do this by presenting a brief history of Icelandic athletics and auditing dimensions of seven key drivers of development: 1) Structure, Management and Administration, 2) Facilities, 3) Competition Opportunities, 4) Coaching, 5) Officiating, 6) Scientific & Medical Support, 7) Athletics Culture. Drawing on interviews with leaders and observers of the sport and official documents for data, they give a detailed description of the present situation and the factors shaping it. They conclude that the leaders of Icelandic athletics have reasonable strategies and there is a case for optimism about the future.