Arctic Iceberg is a level in the Grape Cup in Pac-Man World Rally. The level takes place on a giant iceberg floating in water and there are Vikings here but they only watch the race and don't affect it, there's also a whale seen right after the finish line but it also doesn't do anything. Once the race begins the racers must make some slightly sharp turns, then the racers will get to the point where there is a warning sign warning racers about Pac-Penguins. The Penguins are sliding on they're bellies and going through holes they barely fit in, if the racers bump into the Penguins they will spin out. The ice the Penguins are on is Slippery and parts of the wall of ice are missing so if the racers slip up they will fall into the ice cold water. Once pass the Pac-Penguins they will need to use a Speed Booster to make a jump into a cave, miss it and you will fall to the lower part of the race course but it will count as falling off the course. When the racers are in the cave and follow the arrow signs they will find a Yeti growling and smashing the ground with its club for no reason, the racers must avoid the yeti's club or they will get smashed. Once pass the yeti the racers will get to split parts with nothing on the left and a Green Pac-Box on the right, then they will get to presumbly the Vikings' Ship that they crashed into the iceberg which has barrels that don't affect the racers just like the cactuses on Canyon Crusade. There is a Speed Booster on the ship to get over the broken part of the ship and the very small ice pieces. Though if the player(s) activate the Watermelons and grab some then they can take a Speed Booster that appears if any racers has it and make a huge jump through the ship's sail that has a big hole in it jumping over lots of hazards and items by racers, after that there are three ramps that racers can jump off of for speed then they reach the finish line.
Arctic Iceberg reappears as a battle mode course but only in the PSP version it doesn't appear in any other versions of the game. The course layout is a round arena with some ice walls, there are also two Pac-Penguins sliding around making anyone who bumps into them lose health and a pit of water that characters can fall into.
Arctic Iceberg shares it's music with the award ceremony.