The party has called for "state-controlled production and sale of cannabis", as well as decriminalisation of harder drugs.
"Current policies are clearly not working," the party's spokesperson Hanna Marcussen, told Aftenposten newspaper.
"Today marijuana is sold openly along the Aker River in Oslo without anyone managing to restrict access. It is time that someone takes on this difficult debate."
She said that decriminalising the use of heroin and cocaine would help addicts, who the party believes should not be seen as criminals.
"We want to decriminalise the use of heavier drugs. This is a health problem. Compared with other countries, we have particularly high number of fatal overdoses due to hard drugs."
The proposals resemble those of Copenhagen mayor Frank Jensen, who has long pushed for state-run cannabis production.