Mentanarvirðisløn Landsins has been awarded by the Faroese government to Faroese writers, musicians, artists etc. since 1998. In 2004 no award was given. From 1998 to 2000 only one award was given, but in 2001 they established an additional award, half as big as the original.

Faroese literature, in the traditional sense of the word, has only really developed in the past two hundred years. This is mainly because of the islands' isolation, and also because the Faroese language was not written down in a standardised format until 1890. Until then the Danish language was encouraged at the expense of Faroese. Nevertheless, the Faroese language soon became a vehicle for literature in its own right and has produced writers in several genres.