Iceland, officially the Republic of Iceland is a country of northwestern Europe, comprising the island of Iceland and its outlying islets in the North Atlantic Ocean between Greenland, Norway, Ireland, Scotland and the Faroe Islands. As of April 2007, it had a population of 309,699. Its capital and largest city is Reykjavík.

Due to its location on the Mid-Atlantic Ridge, Iceland is very volcanically and geologically active; this identifies the landscape in various ways. The interior mainly consists of a plateau characterized by sand fields, mountains and glaciers, while many big glacial rivers stream to sea through the lowlands. Due to the Gulf Stream, Iceland has a temperate climate compared to its latitude, which provides habitable environment and nature.

Iceland has a history of habitation since about the year 874 when, according to Landnámabók, the Norwegian chieftain Ingólfur Arnarson became the first permanent Norwegian settler on the island. Others had visited the island earlier and stayed over winter. Over the next centuries, people of Nordic and Gaelic origin settled in Iceland. Until the twentieth century, the Icelandic population relied on fisheries and agriculture, and was from 1262 to 1944 a part of the Norwegian and later the Danish monarchies. In the 20th century, Iceland's economy and welfare system developed quickly.

Today, Iceland is a highly developed country, the world's fifth and second in terms of gross domestic product (GDP) per capita and human development respectively. It is based upon a free market economy where service, finance, fishing and various industries are the main sectors. Thanks to its beautiful and exotic scenery, the tourism industry is growing rapidly. Iceland is a member of the UN, NATO, EEA, and OECD.

Some famous Icelanders include alternative rock band The Sugarcubes and particularly its singer Björk; rap group Quarashi; artist collective GusGus; post-rock band Sigur Rós; electronic group múm; folk electronic/acoustic musician Emiliana Torrini and novelist Halldór Laxness, winner of the Nobel Prize for literature in 1955. Pianist and conductor Vladimir Ashkenazy has been an Icelandic citizen since 1972. Although raised and educated in Scotland, TV presenter Magnus Magnusson was born in Reykjavík. Footballer Eiður Guðjohnsen who played for Chelsea F.C. and currently plays for FC Barcelona in Spain is Iceland's most famous sportsman. Magnús Scheving, creator of LazyTown, an aerobics champion and CEO of LazyTown Entertainment, who also stars in the show.

Iceland's literacy rate is among the highest in the world, and a love of literature, art, chess, and other intellectual pursuits is widespread.

An important key to understanding Icelanders and their culture (and which differentiates them from many contemporary Nordic peoples) is the high importance they place on the traits of independence and self-reliance. Icelanders are proud of their Viking heritage and Icelandic language. Modern Icelandic remains close to the Old Norse spoken in the Viking Age.

Icelandic society and culture has a high degree of gender equality, with many women in leadership positions in government and business. Iceland also has a highly progressive gay rights legislation, with couples having been able to register civil unions since 1996, and adopt since 2006. Women retain their names after marriage, since Icelanders generally do not use surnames but patronyms or (in certain cases) matronyms. See Icelandic name for further discussion.

One of the most popular tourist attractions in Iceland is visiting the geothermal spas and pools that can be found all around the country, such as Bláa Lónið (The Blue Lagoon) on the Reykjanes Peninsula near the Keflavík International Airport.

In 2006, Iceland was ranked as the fourth happiest nation in the world by an independent scientific study.