This article uses the case of Iceland to study how neoliberal globalization impacts class discourse in the political field and broader perceptions of class division. Analyzing a leading newspaper and parliamentary debates from 1986–2012, I show how neoliberal globalization—especially by increasing economic inequality—created a disjuncture between an increasingly differentiated social space and a national habitus cultivated in a small, homogeneous, and egalitarian society. This undermined taken‐for‐granted assumptions of relative classlessness and heightened perceptions of class division during a neoliberal ascendancy period from 1995 to Iceland's economic collapse in September 2008.