Iceland participated in the Eurovision Song Contest 2023 in Liverpool, United Kingdom, with "Power" performed by Diljá.

[1] The contest has been broadcast in Iceland since as early as 1970, but the geographically-remote nation was prevented from competing until a stable satellite connection could be established to enable live transmission of it.

[8][9] RÚV confirmed its intention to participate at the 2023 contest on 29 August 2022, and concurrently affirmed details for the production of Söngvakeppnin 2023 to select its entry as well as opening the song submission process.

[10] Söngvakeppnin 2023 was the national final organised by RÚV in order to select Iceland's entry for the Eurovision Song Contest 2023.

[10] The shows took place in the RVK Studios in Gufunes,[11] hosted by Ragnhildur Steinunn Jónsdóttir, Unnsteinn Manuel Stefánsson, and Sigurður Þorri Gunnarsson.

[12] In each semi-final, five of the ten competing acts performed, and the two entries which were determined solely by the viewing public through telephone voting and the newly introduced RÚV Stjörnur app progressed to the final.

[13] As per the rules of the competition, an additional optional qualifier could be selected by the contest organisers from among the non-qualifying acts, which would also progress to the final.

[16][17] In each semi-final, five of the ten competing acts performed, and two entries progressed to the final, determined solely by the viewing public through telephone voting and the RÚV Stjörnur app.

[13] The second semi-final featured performances from Ragnhildur Gísladóttir [is], Unnsteinn Manuel Stefánsson, Guðlaug Sóley Höskuldsdóttir [is], and Sveinbjörns Thorarensen [is].

On 31 January 2023, an allocation draw was held, which placed each country into one of the two semi-finals, and determined which half of the show they would perform in.