Iceland is a medium-sized island in the North Atlantic ocean. The island is located east of Greenland and immediately south of the Arctic Circle, atop the divergent boundary of the Mid-Atlantic Ridge in the North Atlantic Ocean. It lies about 4,200 km (2,610 mi) from New York City and 860 km (534 mi) from Scotland. The term Iceland also is used to refer to the country sometimes called the Republic of Iceland, of which the island Iceland contains almost all the land area and almost all the population.

Iceland has extensive volcanic and geothermal activity. The rift associated with the Mid-Atlantic Ridge, which marks the division between the European and North American tectonic plates, runs across Iceland from the southwest to the northeast. This geographic feature is prominent at the Þingvellir National Park, where the promontory creates an extraordinary natural amphitheatre. The site was the home of Iceland's parliament, the Alþing, which was first convened in 930.

About half of Iceland's land area, which is of recent volcanic origin, consists of a mountainous lava desert (highest elevation 2,119 m (6,952 ft) above sea level) and other wasteland. Eleven percent is covered by three large glaciers:

Iceland ⁱ/ˈaɪslənd/ (Icelandic: Ísland, IPA: [ˈislant]) is a Nordic European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. The country has a population of about 320,000 and a total area of 103,000 km² (40,000 sq mi). The capital and largest city is Reykjavík, with the surrounding areas in the southwestern region of the country being home to two-thirds of the country's population. Iceland is volcanically and geologically active. The interior mainly consists of a plateau characterised by sand fields, mountains and glaciers, while many glacial rivers flow to the sea through the lowlands. Iceland is warmed by the Gulf Stream and has a temperate climate despite a high latitude just outside the Arctic Circle.

According to Landnámabók, the settlement of Iceland began in AD 874 when the chieftain Ingólfur Arnarson became the first permanent Norse settler on the island. Others had visited the island earlier and stayed over winter. Over the following centuries, Norsemen settled Iceland, bringing with them thralls (slaves) of Gaelic origin. From 1262 to 1918 Iceland was part of the Norwegian and later the Danish monarchies. Until the 20th century, the Icelandic population relied largely on fisheries and agriculture, and the country was one of the poorest and least developed in the world. Industrialisation of the fisheries and aid from the Marshall Plan brought prosperity in the years after World War II, and by the 1990s it was one of the world's wealthiest countries. In 1994, Iceland became party to the European Economic Area, which made it possible for the economy to diversify into economic and financial services.