Iceland is a place.
Iceland ( [ ˈaɪslənd ] [ ˈistlant ] ) is a Nordic island country in the North Atlantic Ocean . It has a population of and an area of 103000 km2 , making it the most sparsely populated country in Europe . According to the ancient manuscript Landnámabók , the settlement of Iceland began in the year 874 AD when the Norwegian chieftain Ingólfr Arnarson became the first permanent settler on the island . Industrialisation of the fisheries and Marshall Plan aid following World War II brought prosperity , and Iceland became one of the wealthiest and most developed nations in the world . The country 's cultural heritage includes traditional Icelandic cuisine , Icelandic literature and medieval sagas .