[4]: 122 The Icelandic Sheepdog is one of very few breeds of dog for which claims of ancient origin are demonstrably supported by both archaeological and written evidence.

[5]: 80  It derives from dogs brought to Iceland by Viking colonists from 874 onward;[5]: 80 [6] these are thought to have been from the same ancestral stock which gave rise to the modern Buhund of Norway and Vallhund of Sweden.

[7]: 178 [8]: 191 As a result of commerce with Iceland in the Middle Ages, the dog became fairly well known in other European countries including England and France;[5]: 80  an early description dates to 1492.

[5]: 80 [10]: 106 [11]: 230 The Chien d'Islande or Iceland Dog was both discussed and illustrated in the fifth volume of the Histoire Naturelle of Georges-Louis Leclerc, Comte de Buffon, published in 1755.

[13][14]: 66 Plague and canine distemper destroyed over 75% of the breed in the late nineteenth century, leading to a ban on the importation of dogs to Iceland.