The location of the Faeroe Islands in a climatically unique part of the North Atlantic region provides an opportunity to register the timing and severity of late Quaternary climatic changes. These reflect the cessation and renewal of thermohaline circulation. In this context, this paper provides an introduction to the late Weichselian and Holocene periglacial geomorphology of the Faeroe Islands. It presents the most prominent periglacial phenomena together with their altitudinal and spatial distribution. Although permafrost has been absent during the Holocene, the occurrence of late Weichselian rock glaciers indicates the former presence of permafrost. The modern periglacial environment is characterized by wind action, avalanche activity, talus production, debris flows, solifluction and the development of small‐scale patterned ground. The distribution of active periglacial phenomena is analysed in relation to air and soil temperatures, measured 1995–97, at various altitudes. The altitudinal range of 250–450 m ASL represents the modern lower limit for periglacial activity, and corresponds to a mean annual air temperature of 5·0–3·5 °C. Above this altitudinal range, periglacial features such as small‐scale patterned ground and sorted stripes are widespread and plant growth is restricted. This periglacial zone extends to the top of the highlands (maximum altitude 882 m ASL). Today, the potential permafrost and glaciation levels are presumably situated 300–450 m and 150–250 m above the highest mountains, respectively. Past Holocene periglacial activity is documented by 14C accelerator mass spectrometry (AMS) dates, the 100 year temperature record from Tórshavn, statistics of whale catch and other historical records from the Faeroe Islands and neighbouring areas. © 1998 John Wiley & Sons, Ltd.