The 2010 IIHF World U20 Championship Division III took place in Istanbul, Turkey from January 4 to 10, 2010. The top two teams in the tournament were promoted to Division II for the 2011 IIHF World U20 Championship.
The top two teams in each group advance to the semi-finals, while the remaining teams will play for fifth to seventh place.
The two finalists, Australia and Iceland, are promoted to Division II for the 2011 IIHF World U20 Championship.