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9 November 2018, 15:42 | Updated: 9 November 2018, 16:40
The frozen food store shared what was intended to be their festive ad, which highlighted the issues with palm oil.
Iceland's 2018 Christmas advert has been banned for being too political.
The frozen food specialists joined forces with Greenpeace this year, using their pre-existing advertisement to highlight the destruction of the rainforest due to palm oil.
However, advertising clearance body Clearcast decided it breaks rules laid down by the 2003 Communications Act.
Watch the advert, which features a young girl and an orangutan called Rang-tang, above.
The watchdog said in a statement: "Clearcast and the broadcasters have to date been unable to clear this Iceland ad because we concerned that it doesn’t comply with the political rules of the BCAP code.
"The creative submitted to us is linked to another organisation who have not yet been able to demonstrate compliance in this area."
Iceland became the first major UK supermarket to announce they are removing palm oil from all of their own-brand products.
As reported by LBC, Iceland's founder Malcolm Walker said at the time: "This was a film that Greenpeace made with a voice over by Emma Thompson.
"We got permission to use it and take off the Greenpeace logo and use it as the Iceland Christmas ad. It would have blown the John Lewis ad out of the window. It was so emotional."
Watch Chris Moyles reveal his "John Lewis Christmas advert" prank: