The Antarctic Peninsula (AP) is a composite magmatic arc terrane formed at the Pacific margin of Gondwana. Through the late Mesozoic and Cenozoic subduction has stopped progressively from southwest to northeast as a result of a series of ridge trench collisions. Subduction may be active today in the northern part of the AP adjacent to the South Shetland Islands. The subduction system is confined by the Shackleton and Hero fracture zones. The magmatic arc of the AP continental margin is marked by high-amplitude gravity and magnetic anomaly belts reaching highest amplitudes in the region of the South Shetland Islands and trench. The sources for these anomalies are highly magnetic and dense batholiths of mafic bulk composition, which were intruded in the Cretaceous, due to partial melting of upper-mantle and lower-crustal rocks. 2-D gravity and magnetic models provide new insights into crustal and upper-mantle structure of the active and passive margin segments of the northern AP. Our models incorporate seismic refraction constraints and physical property data. This enables us to better constrain both Moho geometry and petrological interpretations in the crust and upper mantle. Model along the DSS-12 profile crosses the AP margin near the Anvers Island and shows typical features of a passive continental margin. The second model along the DSS-17 profile extends from the Drake Passage through the South Shetland Trench/Islands system and Bransfield Strait to the AP and indicates an active continental margin linked to slow subduction and on-going continental rifting in the backarc region. Continental rifting beneath the Bransfield Strait is associated with an upward of hot upper mantle rocks and with extensive magmatic underplating.