Origin & history
New Year's Eve in Iceland has roots in both Christian and Norse traditions. Following the adoption of Christianity around 1000 AD, the celebration of the turn of the year was aligned with the Gregorian calendar. However, earlier pagan influences remain, particularly the tradition of bonfires (brenna) which may derive from Norse midwinter festivals meant to ward off evil spirits. The Icelandic word "Gamlárskvöld" literally means "Old Year's Eve," reflecting the focus on bidding farewell to the past.
In the 18th and 19th centuries, New Year's Eve became more widely observed as urbanization grew. The tradition of massive bonfires, often accompanied by fireworks, became established in the 20th century, inspired by similar practices in other Nordic countries. The holiday also absorbed elements of Icelandic folklore, such as the belief that elves and hidden people move to new locations on New Year's Eve, and that the dead can be glimpsed at churchyards.
The modern celebration was further shaped by the introduction of fireworks sales for fundraising by the Icelandic Association for Search and Rescue (ICE-SAR) starting in the 1960s, which turned the sky into a spectacular display. Today, New Year's Eve is one of the most important holidays in Iceland, blending ancient customs with contemporary festivities.
Customs & traditions
Icelanders celebrate New Year's Eve with bonfires (brennur) that are lit across the country, especially in rural areas. Communities gather around these fires to sing, chat, and watch fireworks. The bonfire tradition is believed to scatter evil spirits and symbolize the burning away of the old year. In Reykjavík, the main bonfire is held at the University of Iceland, but neighborhoods organize their own.
At midnight, fireworks explode everywhere, with many purchased from ICE-SAR to support search and rescue teams. The display is so intense that the sky glows brightly. After midnight, people often attend parties or enjoy a festive meal, which may include lamb, game, or traditional Icelandic dishes like smoked lamb (hangikjöt) and pickled herring. A popular dessert is a layered cake with jam and cream (vinarterta) or other sweets.
A unique Icelandic custom is the burning of an effigy (a figure made of straw or old clothes) on the bonfire, representing the old year. Another tradition involves reading a poem or making wishes. Some watch the comedy special "Áramótaskaupið," a satirical review of the year's events, broadcast on national television. After midnight, people may visit neighbors or attend church services, and it is common to greet the new year with glasses of sparkling wine or beer.
Why it is celebrated
New Year's Eve in Iceland is a time for reflection, community, and renewal. It marks the end of one year and the beginning of another, allowing people to let go of past troubles and embrace new opportunities. The bonfires and fireworks symbolize purification and the driving away of darkness, both literal and metaphorical.
For Icelanders, the holiday also reinforces social bonds, as people gather with family, friends, and neighbors. The strong tradition of supporting ICE-SAR through fireworks purchases adds a layer of civic pride and mutual aid. Overall, New Year's Eve is a festive yet meaningful occasion that honors the past while welcoming the future with hope and celebration.