The publishing company Vaka-Helgafell (now an imprint of Forlagið) founded the prize in 1995, in cooperation with Laxness' family. The main purpose of the prize was to support Icelandic prose fiction.
The award was linked to a novel and short story manuscript competition. The prize was handed out in the fall and Vaka-Helgafell published the novel at the same time.
2004
Gerður Kristný: Bátur með segli og allt (A Boat with a Sail and All)
2002
Ari Trausti Guðmundsson: Vegalínur (Road-Lines)
2001
Bjarni Bjarnason: Mannætukonan og maður hennar (The Cannibal Woman and Her Man)
2000
Gyrðir Elíasson: Gula húsið (The Yellow House)
1999
Award not given that year
1998
Sindri Freysson: Augun í bænum (The Town Has Eyes)
1997
Eyvindur Eiríksson: Landið handan fjarskans (The Land Ahead of the Distance)
1996
Skúli Björn Gunnarsson: Lífsklukkan tifar : smásögur (Ticking of the Life-Clock : short stories)
1995
Award not given that year