This report summarizes the results of a diagnostic review of wildfire risk and management capacity in Iceland, and includes technical recommendations that can guide policy discussions, decisions, and actions in the immediate/short term as well as the medium to long term. The review followed the Union Civil Protection Mechanism (UCPM) Wildfire Peer Review Assessment Framework (PRAF)17 and the principles of IWFRM. It considered capacity across multiple dimensions, including governance, planning, understanding of risk, prevention, early warning and public awareness, preparedness and emergency response, recovery and post-disaster financing. Drawing on desk reviews, consultations with stakeholders, and expert analysis, each chapter reviews current status, challenges, and opportunities for improvement.