The 2005 IIHF World U18 Championship Division III began on 7 March 2005 in Sofia, Bulgaria. Bulgaria, Israel and New Zealand returned to compete in the Division III competition after missing promotion at the previous years World Championships. Australia and Belgium entered the Division III competition after being relegated from the Division II tournaments of the 2004 IIHF World U18 Championships and Turkey returned to Division III after winning the 2005 IIHF World U18 Championship Division III Qualification tournament that was held the previous month in Ankara, Turkey.