1986 in Iceland

Incumbents

• President - Vigdís Finnbogadóttir
• Prime Minister - Steingrímur Hermannsson

  Events

• May 3: Iceland makes its first participation in the Eurovision Song Contest with the song Gleðibankinn, sang by ICY band.
• 11-12 October: Reykjavík Summit between U.S. President Ronald Reagan and General Secretary of the Communist Party of the Soviet Union Mikhail Gorbachev.

  Births

• 19 June - Ragnar Sigurðsson, footballer
• 25 July - Margrét Lára Viðarsdóttir, footballer.
• 14 September - Hallbera Guðný Gísladóttir, footballer
• 24 November - Guðmundur Pétursson, footballer

  Deaths

• 19 January – Jón Helgason, philologist and poet
• 30 November – Emil Jónsson, politician.
• 27 December – Snorri Hjartarson, poet

  Full date missing

• Gunnlaugur Halldórsson, architect