Csaba Bollok's Iska's Journey from Hungary won the discovery of the year award at the Reykjavik International Film Festival. The film was awarded the festival's first Golden Puffin award.
The jury that selected the winner was comprised of Hal Hartley, Fridrik Thor Fridriksson and Greta Olafsdottir.
Iska's Journey follows a young girl from a troubled home who decides to run away with a new friend.
The FIPRESCI prize and the Church Of Iceland award both went to Peter Schonau Fog's The Art Of Crying from Denmark. That film follows an 11-year-old boy in 1970s Denmark who is afraid his father will committ suicide.
'The film deals delicately with issues that often are kept quiet and presents them with respect, understanding and sympathy. The Art of Crying raises awareness of the fragility of life, moves the audience and calls for discussion and responses,' the FIPRESCI jury said.
The audience award went to Anton Corbijn's Ian Curtis biopic Control.
The Amnesty International award went to Jawad Rhalib's El Ejido, The Law of Profit, about immigrants in southern Spain.
The festival, now in its fourth year, continued to grow in popularity, despite being run on a modest budget under $500,000. More than 20,000 people (or about 7% of Iceland 's population) attended screenings (up from last year's 15,000), putting the festival at 84% capacity.
Organisers announced that the dates for the 2008 event will be Sept 25-Oct 5.
Programme director Dimitri Eipides said he had high hopes for the festival's future. 'I'm optimistic about it, people love coming here,' he said. 'Film-makers can get face-to-face contact with audiences. And it's a festival in tune with local tastes.'