Iceland was present at the Eurovision Song Contest 1986, held in Bergen, Norway. It was the first time Iceland was represented in the contest.
While the country had satellite television contact from other nations (the United States and Canada) since 1981, Iceland was not able to connect to other European nations before the end of 1985, meaning 1986 was the first year Iceland could send a delegation to the Eurovision Song Contest.
The Icelandic national final to select their entry, Söngvakeppni Sjónvarpsins, was held on 15 March at the RÚV Studios in Reykjavík, and was hosted by young musician Jónas R. Jónsson. 1985 Eurovision Song Contest winners Bobbysocks were special guests, and they performed their winning song La det swinge, and a new song entitled Midnight Rocks during the show. The votes of a five-member "expert jury" decided the winner, although only the top five placings were announced.
At the close of the voting it had received 19 points, placing 16th in a field of 20 competing countries. Iceland's first-ever points were awarded to them by the Netherlands (who gave the song five of the eventual 19 points).