The first permanent settler of Iceland was Ingolfur Arnarson, a Norwegian Viking who in 874 AD made his home where Reykjavik now stands.

In 930 AD, the Viking settlers of Iceland founded one of the world's first republican governments. They established a constitution based on individual freedom, land ownership, and sophisticated inheritance laws.

In the year 1000, Icelandic-born Leifur Eiriksson (Leif Eriksson, sometimes called "Leif the Lucky") became the first European to set foot in North America. On another Viking expedition a couple of years later, Icelander Gudrid Thorbjarnardottir had a son, Snorri, who became the first child of European descent to be born in America. The Old Commonwealth Age, described in the classic Icelandic Sagas, lasted until 1262, when Iceland lost its independence.

In 1944 it regained independence and the present republic was founded. The country is governed by the Althing (Parliament), whose 63 members are elected every four years. Elections every four years are also held for the presidency; President Olafur Ragnar Grimsson was elected in June 2000 for the second time.