There are roughly 75,000 Icelandic horses in Iceland, and relatively few abroad, owing in large part to centuries-old Icelandic legislation that prevents any Icelandic horse from returning to the island once it has been taken to another land.

They are considered small (average 13 horse hands high, or 4'4", or about 1.20 to 1.45m, roughly 800 pounds) but very strong for their size. They can carry roughly one-third of their weight, but have to be about four-years-old before they can carry a full-sized adult male human.

It is thought that the horses that belonged to the Vikings had a broad range of looks and many colours.  Thus today, there is much variation found in the colour of Icelandic horses.  In fact, there are approximatly 40 different colours currently found in this breed.  A major means of transport as well as a work animal throughout Iceland's history, since post-World War II they have been largely replaced by machinery.  These days, although still used to assist in herding livestock, they are mainly used for leisure riding, gaited competition, and an Icelanding brand of horse-racing. 

Since approximately 1920, Icelandinc horses have been recorded in pedigrees. This is done to ensure their lineage - they must be traceable back to Icelandic ancestors. Names are often derived from Icelandic words which may describe their colour, or have their root in Norse mythology. Some examples include: Grána which means "grey mare"; Teitur, which means "the happy one"; or Hrímfaxi which means "the one with frost in his mane".