INTRODUCTION: Varicella is a common disease with possible consequences. The disease is usually contracted in childhood and persistent antibodies are produced. Varicella vaccine is not widely used in Iceland. The aim of the study was to investigate the epidemiology of varicella in Icelandic children and it s complications. The results may prove important when deciding on varicella immunization in Iceland. MATERIAL AND METHODS: The study was retrospective cross sectional. Varicella antibodies were measured from children 10 years had antibodies. Hospital admissions were 58, annual admissions were or 3.6/100,000 children