Oil spill response is demanding under any circumstances and Arctic conditions impose additional environmental and logistical challenges. The most obvious challenge is dealing with the presence of ice. However, understanding the fate and behaviour of oil in Arctic and ice-covered waters is a fundamental basis for strategies and actions applied to oil spills in these environments. In open water, oil slicks can spread and drift so quickly that shoreline impacts occur before a response can be initiated. In Arctic waters the natural containment provided by ice may slow down the drift and spreading of the oil. Low temperatures and reduced wave energy may reduce the weathering of the oil. This may be advantageous and extend the window-of-opportunity for some types of countermeasures. This report discusses some of the challenges related to fate and behaviour of oil spilt in an Arctic and ice-covered environment and try to point at some knowledge gaps that still seem to exist.