The Nordic Council Literature Prize is awarded for a work of literature written in one of the languages of the Nordic countries, that meets "high literary and artistic standards". Established in 1962, the prize is awarded every year, and is worth 350,000 Danish kroner (2008). Eligible works are typically novels, plays, collections of poetry, short stories or essays, or other works that were published for the first time during the last four years, or in the case of works written in Danish, Norwegian, or Swedish, within the last two years. The prize is one of the most prestigious awards that Nordic authors can win.

The Nordic Council is the official body for formal inter-parliamentary Nordic cooperation among the Nordic countries. Formed in 1952, it has 87 representatives from Denmark, Finland, Iceland, Norway, and Sweden as well as from the autonomous areas of the Faroe Islands, Greenland, and Åland. The representatives are members of parliament in their respective countries or areas and are elected by those parliaments. The Council holds ordinary sessions each year in October/November and usually one extra session per year with a specific theme. The council's official languages are Danish, Finnish, Icelandic, Norwegian, and Swedish, though it uses only the mutually intelligible Scandinavian languages—Danish, Norwegian, and Swedish—as its working languages. These three comprise the first language of around 80% of the region's population and are learned as a second or foreign language by the remaining 20%.