Background: In 2012 a project began to implement the Individual Placement & Support (IPS) model into vocational rehabilitation for young people with psychosis in Reykjavik. The study was a collaborative project between Laugarasinn; a specialized unit for early intervention in psychosis and VIRK-Vocational Rehabilitation Fund, a private foundation where all the major unions and employers of the Iceland labor market are members. In November 2013 the first client began competitive employment via IPS and the project has gradually developed into one of the most important aspects of the rehabilitation-program for young people with first onset psychosis. In the last year the project has expanded to an inpatient psychosis unit and a dual diagnosis program. Method: Eighty-seven clients have received IPS services with an IPS team of three IPS workers from VIRK and IPS supervisors from three teams at Landspitali University Hospital. Integration of supported education (Sed) services is currently underway using the original IPS fidelity scale adapted for Sed. Results: Fifty-three of 103 clients (50%) are currently receiving IPS services and preliminary results regarding outcomes from the project will be presented.