Iceland recognised Poland in 1922, however first diplomatic relations were established in 1946.

In 1951, Poland opened Consulate General in Reykjavík, which after the year was elevated to the rank of the embassy.

Embassy was open until 1981, when diplomatic relations between Poland's communist government and Iceland's government deteriorated due to the introduction of Martial law in Poland by communists.

From 1981, Poland Ambassador to Norway was also accredited to Iceland.

In 2008 Polish Government opened Consulate General in Reykjavík which was transformed into embassy in 2014.