Two alternative reproductive modes are present in fishes and reflect the age-specific mortality encountered through ontogenesis. Life-history hypotheses suggest that semelparity (i.e. death after a single reproductive event) evolves when the ratio of juvenile to adult survival is relatively high. Conversely, a relatively low ratio of juvenile to adult survival will favour iteroparity (i.e. death after two or more reproductive events). Fisheries management associates capelin (Mallotus villosus) spawning with mass mortality and semelparity even though life history models developed for this species suggest that females may follow an iteroparous trajectory. Capelin may spawn either inter-tidally on the beach or offshore in deeper, ocean waters but post-spawning survival and potential iteroparity has been notoriously difficult to assess in natural populations. Through a series of aquarium experiments we tested post-spawning survivability in a beach spawning and an ocean spawning population. The findings demonstrate that capelin which spawn offshore are absolute semelparous (death of both genders) while beach spawning capelin are iteroparous irrespective of sex. Beach spawning capelin regenerated ripe gonads from one spawning season to the next and provides the first conclusive evidence that capelin is physiologically capable of an iteroparous reproductive mode. The potential physical and biological processes which generate certain reproductive patterns in capelin are summarized and discussed in relation to life history hypotheses. We suggest that capelin is a facultative semelparous species in which dynamic changes within the semelparity-iteroparity continuum may occur as a result of subtle interactions between the spawning habitat, physical forcing, and predatory pressure.