Cannabis in Iceland is illegal. Offenses such as sale and cultivation are heavily punished and can result in jail time. Possession of small amounts will not result in jail time, but offenders will still be subject to arrest and payment of a fine.
There are currently no cannabis-related medical associations in Iceland. The only cannabis medical product that has been legalized is Savitex, a commonly prescribed spray for muscular dystrophy. Savitex is strictly regulated in Iceland and can only be prescribed by a selection of licensed neurologists.