1881 in Iceland

Incumbents

• Monarch: Christian IX
• Minister for Iceland: Johannes Nellemann

Events

• The Alþingishúsið '' is constructed.

Births

• 13 January – Sigvaldi Kaldalóns, composer
• 27 February – Sveinn Björnsson, first President of Iceland.
• 6 August – Hulda, poet
• Jón Stefánsson, landscape artist