The 2016 World Junior Ice Hockey Championship Division III tournament was played in Mexico City, Mexico, from 15 to 24 January 2016. Division III represents the sixth tier of the World Junior Ice Hockey Championships. The champions, Mexico, were promoted to the Division II B for the 2017 tournament, and the last-placed nation (South Africa) were to be relegated to a qualification tournament for 2017, instead an eight-team Division III tournament was decided on in September 2016. Israel participated in a World Junior tournament for the first time since 1997, while Bulgaria returned after withdrawing from the 2015 tournament.