Circulation and hydrography on the shelf east of Iceland and on the western portion of the Iceland-Faeroe Ridge is described by a series of surveys using temperature-salinity profilers, moored current meters and satellite-tracked drifters. The dominant surface current of the region is the northeastward flow of North Atlantic Water at the shelf break southeast of Iceland as it leaves the shelf to join the Iceland-Faeroe Front. On the bottom beneath it flowing in the opposite direction is a strong, steady current composed of water from the Nordic Seas that has overflowed the ridge and followed along bathymetric contours. North of the front, three comparatively weak currents are identified, formed by splitting of the North Icelandic Irminger Current after it has rounded the northeast corner of Iceland. One branch, the East Icelandic Current, is confined to the shelf and produces a mean, southward flow until it turns eastward to join the Iceland-Faeroe Front. Another leaves the shelf to form the shallow, southeastward flowing Icelandic Current. The third follows deeper contours of the continental slope and renews waters on the northern flank of the Iceland-Faeroe Ridge. ¿ 1998 American Geophysical Union