The invention relates to an ice dispensing system comprising an ice hopper, an ice chute for transporting ice from the ice hopper to a dispensing outlet or a waste outlet, an ice dispensing element for dispensing ice from the hopper into the ice chute, an ice directing element having a first position for directing ice to the waste outlet and a second position for directing ice to the dispensing outlet, and a controller for controlling the ice dispensing element and the position of the ice directing element. Also provided is a beverage dispensing machine comprising the ice dispensing system of the invention and a method for dispensing ice from the ice dispensing system or beverage dispensing machine of the invention.