The government there says they are going to kill 38 whales for scientific purposes, but many environmental groups think this is just an excuse.
Banned
Gerd Leipold, from Greenpeace International, reckons they are just saying this so they can actually start commercial whaling.
The government of Iceland says they are going to kill the whales to find out how many fish they eat.
The RSPCA has asked people to think about whether they should buy fish from the island in protest at the decision.
Tourism in Iceland could also be damaged by the return to whaling, as many foreigners might be put off visiting.
The British government attacked the decision, calling the plan "wholly unjustified".