The long-term objective of this study is the comprehensive revision of PSHA for Iceland using new state-of-the-art models, methods, and earthquake source zonations. Moreover, this will include the implementation of the first physics-based approach to PSHA, with a focus on the earthquake near-fault region of southwest Iceland. Therefore, the short-term objective of this specific proposal is to carry out a comprehensive PSHA using Monte Carlo simulations of finitefault earthquake rupture using a new and complete physics-based earthquake source model of southwest Iceland.