The aim of this article is to understand the recent changes of Danish drug policy, which have changed both the balance between and the content of control and welfare. For this purpose, Danish drug policy is seen as a ‘policy space’ where different political rationalities are articulated and played out against each other. The political rationalities articulated within the realm of drug policy are furthermore seen to be influenced by the political rationalities that dominate penal policy and welfare policy more generally. To account for the policy space of Danish drug policy today the article builds on analyses of legislation, policy documents and research related to the policy process. The article is furthermore built on secondary literature about Danish drug policy. The article finds that Danish drug policy articulates a particular mix of neo-conservative and neo-liberal political rationalities that constitutes the basis for the balance between control and welfare in Danish drug policy today.