Petrological, geochemical, and geophysical gradients along the SE volcanic zone in Iceland imply systematic variations in melting and crystallization conditions and in magma supply and eruption rates. At the southern tip of the zone, in Vestmannaeyjar, alkali basalt magmas are generated by small degrees of melting under a thick lilthosphere. Farther north, in the Hekla-Katla region, greater degrees of melting result in the generation of transitional basalt magmas. Magma supply rtes exceed eruption rates, and melts begin to accumulate at the base of the crust, as indicated by magnetotelluric evidence. Uniform rare earth element patterns in the Hekla-Katla basalts may be explained by homogenization in the melt accumulation zone or by uniform melting conditions. Infrequent replenishment of magma reservoirs in this region leads to mixing of compositionally diverse magmas and, consequently, to basalts with diverse phenocryst compositions and textures. Even farther north, in central Iceland, the melting anomaly associated with the SE zone has developed to the same degree as it has beneath the SW axial rift zone, leading to similar magmatic conditions. High magma supply rates and low cooling rates inhibit fractionation and lead to the eruption of voluminous olivine tholeiites. In these areas a broad spectrum of melt compositions is generated by variable degrees of melting over a wide depth range. The compositional diversity, e.g., in large ion lithophile element enrichment, is masked somewhat by reequilibration and mixing of melts on ascent and in the melt accummulation zone. Compositional diversity may be preserved, however, in the melt accummulation zone in a lateral direction away from the rift axis since distal parts of the melt zone are fed only by melts segregating at greater depths. The variations in magmatic conditions along the SE zone, which are analogous to those inferred along propagating rifts, may be related to a mantle blob that ascended beneath central Iceland 2-3 m.y. ago, spread out laterally and triggered a southward propagating rift.