Iceland -en-us-Iceland. oggˈaɪslənd- also referred to as Republic of Iceland is a European island country in the north Atlantic Ocean on the Mid-Atlantic Ridge. It has a population of about 320 000 and a total area of 103 000 km (39 769 sq mi). The capital and the largest city is Reykjavík with the surrounding areas in the southwestern region of the country being home to two-thirds of the national population. Iceland is volcanically and geologically active.