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The first people thought to have inhabited Iceland were Irish monks or hermits who came in the eighth century, but left with the arrival of Norsemen, who systematically settled Iceland in the period AD 870-930. However, there is still no tangible evidence beyond the written word to support the theory of monk inhabitation yet, as well, any writings supporting the theory are conflicted. The first known permanent Norse settler was Ingólfur Arnarson, who built his homestead in Reykjavík in 874. Ingólfur was followed by many other emigrant settlers, largely Norsemen and their Irish slaves. By 930, most arable land had been claimed and the Althing, a legislative and judiciary parliament, was founded as the political hub of the Icelandic Free State. Christianity was peacefully adopted in 1000. The Free State lasted until 1262, at which point the political system devised by the original settlers proved unable to cope with the increasing power of Icelandic chieftains.

Iceland's official written and spoken language is Icelandic, a North Germanic language descended from Old Norse. It has changed less from Old Norse than the other Nordic languages, has preserved more verb and noun inflection, and has to a considerable extent developed new vocabulary based on native roots rather than borrowings from English. It is the only living language to retain the runic letter Þ. The closest living language to Icelandic is Faroese. In education, the use of Icelandic Sign Language for the Deaf in Iceland is regulated by the National Curriculum Guide.

English is widely spoken, and many Icelanders speak it at an almost native level. Danish is also widely understood. Studying both these languages is a mandatory part of the compulsory school curriculum. Other commonly spoken languages are German, Norwegian and Swedish. Danish is mostly spoken in a way largely comprehensible to Swedes and Norwegians – it is often referred to as "Scandinavian" in Iceland.

In addition to Icelandic, many immigrants speak their respective native languages. Polish is arguably the most widespread of them.

The Blue Lagoon (Icelandic: "Bláa Lónið") geothermal spa is one of the most visited attractions in Iceland. The steamy waters are part of an other-worldly lava formation. The Blue Lagoon spa and geothermal complex is clearly visible from any of the usual satellite imagery sources at coordinates (63.879, -22.434).

The warm waters are rich in minerals like silica and sulfur and bathing in the Blue Lagoon is reputed to help many people suffering from skin diseases such as psoriasis. The water temperature in the bathing and swimming area of the lagoon averages 40 °C (104 °F).

The lagoon is fed by the water output of a nearby geothermal power plant. Superheated water is vented from the ground near a lava flow and used to run turbines that generate electricity. After going through the turbines, the steam and hot water passes through a heat exchanger to provide heat for a municipal hot water heating system. Then the water is fed into the lagoon for recreational and medicinal users to bathe in.

The spa is located in a lava field in Grindavík on the Reykjanes Peninsula, southwestern Iceland. It is situated approximately 13 km from the Keflavík International Airport and 39 km from the capital city of Reykjavík.