The Icelandic participating broadcaster, Ríkisútvarpið (RÚV), selected its entry through Söngvakeppni Sjónvarpsins 1992.

The Icelandic broadcaster, Ríkisútvarpið (RÚV), held a national final to select its entry for the Eurovision Song Contest 1992 - Söngvakeppni Sjónvarpsins 1992.

RÚV held the national final on 22 February 1992 at its television studios in Reykjavík, hosted by Sigrún Waage.

The winner was Sigríður Beinteinsdóttir and Sigrún Eva Ármannsdottir with the song "Nei eða já", composed by Friðrik Karlsson, Grétar Örvarsson, and Stefán Hilmarsson.

Sigríður had previously represented Iceland in 1990 as a member of Stjórnin with "Eitt lag enn".