Materials used in high temperature geothermal wells can be subjected to corrosion due to the aggressiveness of the geothermal fluid that contains dissolved gases such as H2S and CO2 and in some cases even HCl. During monitoring and discharge testing of a new high temperature geothermal well in Krafla geothermal area in Iceland it was discovered that the carbon steel liner in the bottom of the well was fractured and severely corroded. Parts of the steel liner were retrieved from the well to investigate the cause of failure. Examination of the parts from the steel liner and tensile testing of the material was performed. The inspection revealed that the liner was severely corroded and parts of it situated on 1600 m depth had experienced environmentally assisted cracking in the form of hydrogen embrittlement. The results from the examination and testing are revealed here and discussed. Subsequent testing of corrosion resistant materials inside the well are also described and the results shown.