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"Hægt og hljótt" - Halla Margrét Árnadóttir
"We all disappear slowly and quietly into the night"
The Icelandic Final was held on March 23rd at the RUV TV-Studios in Reykjavik, hosted by Kolbrún Halldórsdóttir. All of the songs were presented as pre-recorded video clips and the winner was chosen by 8 regional juries.
| 1 | Ég leyni minni ást | I'm hiding my love | Björgvin Halldórsson | 30 | 8th |
| 2 | Hægt og hljótt | Slowly and quietly | Halla Margrét Árnadóttir | 88 | 1st |
| 3 | Lífsdansinn | The dance of life | Björgvin Halldórsson & Erna Gunnarsdóttir | 55 | 4th |
| 4 | Í blíðu og stríðu | In good and bad times | Jóhann Helgason | 24 | 9th |
| 5 | Sumarást | Summer love | Jóhanna Linnet | 32 | 7th |
| 6 | Norðurljós | Northern light | Eyjólfur Kristjánsson | 59 | 3rd |
| 7 | Lífið er lag | Life is a song | Módel | 74 | 2nd |
| 8 | Sofðu vært | Sleep tight | Sigrún Hjálmtýsdóttir | 20 | 10th |
| 9 | Aldrei ég gleymi | I will never forget | Erna Gunnarsdóttir | 36 | 6th |
| 10 | Mín þrá | My desire | Björgvin Halldórsson | 46 | 5th |
Halla Margrét Árnadóttir came 16th at the ESC. The lead singer of the group Módel was Eiríkur Hauksson who was a member of the group Icy that represented Iceland at ESC 1986.