Tells of the years during the allied occupation of Iceland from 1940-1945. While a number of scenes depict daily life in Iceland (a combination of live footage and staged sequences), a substantial part of the film is concerned with military activities in Iceland and abroad, and the political development which lead to the proclamation of the Republic of Iceland in 1944. The film includes archive footage from English, American, German and Norwegian sources and incorporates interviews with people who lived through the era.