The article examines the aims of the workplace-based learning of prospective preschool teachers in Iceland and associated cooperative practices between the University of Iceland and preschools. A "third space" of collaboration between these two sites is considered necessary if the education of preschool student teachers is to be effective. Collaboration between the university and preschools as presented in the university's policy documents and as implemented in practice will be investigated and compared to the literature on collective third space. Implications for both policy and practice are discussed.