The Outsider Festival, due to take place in Rothiemurchus, Aviemore on Saturday 27 and Sunday 28 June, was pulled because it was economically unsustainable.
The event, which last took place in 2007, combines live music and activities, including mountain biking and running, with debate, film, comedy and food. It attracted 10,500 visitors last time around.
A spokeswoman for Unique Events told Event that the company is currently working on sorting out the cancellation and could not comment on future plans.
The Outsider Festival website reads: "Clearly a recession is not the time to realise this bold new concept but we still believe the Outsider was right for its time and perfect for its place and are hugely disappointed that it is not going ahead."
All tickets are being refunded.
To leave a comment register and let us know your thoughts.