in Europe (dark grey)  –  [Legend]Lesbian, gay, bisexual, transgender, and queer (LGBTQ) rights in Iceland rank among the highest in the world.

According to a 2020 study, "scholars have found that it was with modernization and increasing urbanization in the latter half of the nineteenth century that same-sex sexual acts between consenting men became thought of as criminal.

Upon registering their partnerships, same-sex couples were granted many of the same rights, responsibilities and benefits as marriage, including the ability to adopt stepchildren.

[20] On 27 June 2006, Icelandic same-sex couples became eligible to a range of laws including public access to IVF insemination treatment and joint adoption of children.

[21] In 1996, the Althing passed amendments to the Icelandic Penal Code, adding sexual orientation to the country's non-discrimination law.

[25][24][26] A committee that Welfare Minister Eygló Harðardóttir founded in 2014 handed in its conclusions in November 2016, advising the Parliament to pass a general discrimination law.

The laws state that the National University Hospital of Iceland is obligated to create a department dedicated to diagnosing gender dysphoria, as well as performing sex reassignment surgery (SRS).

After successfully completing an 18-month process, including living 12 months in accordance with their gender, applicants appear before a committee of professionals.

In June 2019, the Althing voted 45–0 on a bill to implement a self-determination model, similar to numerous European and South American countries.

[32] The new law allows transgender individuals to change their legal gender without having to receive a medical and mental disorder diagnosis, or undergo sterilization and sex reassignment surgery.

[36] The bill also includes a ban on medical interventions performed on intersex children against their will, with some exceptions in cases of health-related reasons,[37][38] and a committee was set up to report on the issue.

[42] Since 2016, the town of Hafnarfjörður has included information about same-sex relationships in its eighth grade (age 14–15) sex education lessons.

[45] In October 2015, Health Minister Kristján Þór Júlíusson announced his support for regulatory changes to enable MSM in Iceland to donate blood.

Gay men from over 120 countries were asked about how they feel about society's view on homosexuality, how they experience the way they are treated by other people, and how satisfied are they with their lives.

In addition, former Prime Minister Jóhanna Sigurðardóttir (2009–2013), the first openly gay head of government of modern times, and her partner Jónína Leósdóttir became one of the first couples to marry in Iceland after the passage of the new law.

Opinion polls have found overwhelming public support for same-sex marriage and LGBT rights more broadly.