A method and device for producing ice droplets on-demand in a refrigerator is provided wherein small water droplets are dropped from a valve through a supercooled chamber where the water freezes and forms ice pieces, such as in the form of pellets, while free-falling through the chamber, with the ice being directed to a dispenser assembly. The size and dispensing rate of the droplets can be selected by a user and regulated by a controller. The method and device eliminates the need for bulk ice storage and dispensing components.