First Minister Alex Salmond has confirmed he will resign if he loses a no-confidence motion called over the move.
The hero's welcome given to Abdul Baset Ali al-Megrahi on his arrival back in Libya has infuriated the United States, with the FBI, top military brass and President Barack Obama all joining in the criticism.
And there are political knock-on effects south of the Scottish border too.
There have been widespread accusations that the release was linked to trade ties between the UK and Libya.
Of the 270 people killed when Pan Am flight 103 exploded over the Scottish town of Lockerbie 21 years ago, 189 of them were American.
And since Megrahi walked free last week the US has voiced its displeasure over the move in the strongest terms.
Top US military commander Admiral Mike Mullen says he is appalled by what he called a political decision. Read more here ...
Source: ABC Online