Icelandic athletes have competed at every Summer Olympic Games in the modern era since 1912, except for four occasions.

Seven Icelandic athletes had previously competed in Sydney, including swimmer Örn Arnarson, who finished fourth in the men's 200 m backstroke.

Handball player Guðmundur Hrafnkelsson, who competed in his third Olympics since 1988 and helped his team set a remarkable comeback to the Games after an eight-year absence, was appointed by the committee to become the nation's flag bearer in the opening ceremony.

[1] Iceland failed to win an Olympic medal for the first time since 1996, although pole vaulter Þórey Edda Elísdóttir achieved a best result for the team at these Games with a fifth-place finish.

[4] Head coaches: Gudmundur Gudmundsson M = Medal race; OCS = On course side of the starting line; DSQ = Disqualified; DNF = Did not finish; DNS= Did not start; RDG = Redress given Icelandic swimmers earned qualifying standards in the following events (up to a maximum of 2 swimmers in each event at the A-standard time, and 1 at the B-standard time):