Parliamentary elections were held in Iceland on 28 June 1959.

[2] Following the tie, electoral reforms were introduced and early elections were held in October.

Twenty-one members were elected in single-member constituencies via first-past-the-post voting, while the remainder were elected using D'Hondt method proportional representation: twelve members in two-member constituencies, eight members in Reykjavík, and eleven from a single national compensatory list.

In constituencies electing two or more members, within the party list, voters had the option to re-rank the candidates and could also strike a candidate out.

Allocation of seats to candidates was done using a system based on the Borda count.