**Abstract**

The chapter will explore the interplay between dyslexia, anxiety, and educational attainment of young adults in Iceland, a small Nordic welfare state, placing emphasis on inclusive education. A survey, representative of 18- to 24-year-olds in Iceland, and qualitative interviews with 10 young adults were used to gain an understanding of the association between being diagnosed with dyslexia, having experienced anxiety, and young people's education path. Findings from the survey show that being diagnosed with dyslexia was associated with anxiety and educational attainment. However, experiencing anxiety depended on how old the young adults were when they were diagnosed with dyslexia. Those who were diagnosed at an early age did, in general, not show symptoms of anxiety and were more likely to have continued their studies than those who were diagnosed as teenagers. The qualitative interviews supported the survey-results, as participants described how having to read out loud or receive special education caused anxiety and the feeling of exclusion. The findings indicate that providing support for children with reading difficulties, at an early age, can prevent future anxiety and school drop-out. The findings also raise a question on how well the Icelandic school system conforms to the policy of inclusive education.

**Keywords:** inclusive schools, dyslexia, anxiety, education, young adults
