Lesbian, gay, bisexual and transgender (LGBT) rights in the Faroe Islands are relatively similar to those of Denmark.

While Denmark (including the County of Greenland) lowered the age of consent to 15 in 1977, making it gender-neutral, the autonomous Faroe Islands did not follow suit and change its law until 1988.

The proposed bill included civil marriage and full adoption rights for same-sex couples in line with the laws of Denmark and Greenland.

Despite the recent changes in the marriage law in April 2016, the issues of paternal leave and co-parenting (among other matters) for same-sex couples were left unresolved at the time.

[12][13] On 20 December 2021, two bills submitted by the opposition parties to address the parental rights of same-sex couples were passed in the Løgting at 3rd reading.

Numerous insulting remarks were also made by Faroese MPs, including the equating of LGBT people with sinners and pedophiles.

[27] Despite the legislative attempts, the issue did not become a source of public debate until 2006, when openly gay musician and popular radio host Rasmus Rasmussen was assaulted by five men in Tórshavn.

An internet petition collected 20,000 signatures from different parts of world, most of them coming mainly from Denmark, Iceland and the Faroe Islands themselves, urging the Faroese Parliament to legislate against discrimination based on sexual orientation.

[32] On 15 December 2006, in a 17–15 vote, Faroese legislators approved the inclusion of the words "sexual orientation" in the Faroese anti-discrimination law, stating that "whoever publicly or with the intention of dissemination to a wider circle makes a statement or other communication by which a group of persons are threatened, insulted or degraded on account of their race, color, national or ethnic origin, religion or sexual orientation is liable to pay a fine or be imprisoned for up to two years.

"[33][34] When the law took effect on 1 January 2007, the Faroe Islands became the last Northern European country to ban discrimination and harassment based on sexual orientation.

Later developments suggested that the Faroe Islands were becoming more liberal, even though the laws were still relatively conservative compared to other Nordic countries.

[57] In recent years, Faroe Pride (fo), held annually in Tórshavn on 27 July, has attracted around 10% of the entire Faroese population.