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A first-half free-kick from Hordur Magnusson proved the difference as Iceland edged Ireland 1-0 in an international friendly at the Aviva Stadium.
The 24-four-old's close-range set-piece on his debut proved enough for the away-team as Martin O'Neill's experimental side suffered their first defeat at the Aviva Stadium since 2014, a run which seen the home team unbeaten in 15 games.
An improved performance in the second-half followed a frustrating opening 45 from the hosts and despite lifting the tempo struggled to breakdown a resolute Icelandic defence.
One positive that can be taken from the loss was Daryl Horgan's debut performance after being introduced just on the hour mark with the 24-year-old making a real statement after an exciting 30 or so minutes on the left-wing.
O'Neill and his side will hope to shake off the defeat and will look to return to winning ways when Ireland play Austria on the 11th of June in the World Cup qualifiers.
Both sides failed to carve out any opportunities until the 21st minute when Bristol City's Magnusson's free-kick beat a hesitant Irish wall and found the bottom corner, leaving Keiren Westwood flat footed.
The hosts struggled to breakdown a solid Icelandic backline and it was the visitors who looked the more likely when Alfreð Finnbogason's 30-yard effort dragged wide, a sign they were warming to the task in hand.
Chances were at a premium for the Boys-In-Green, although they did look dangerous when Robbie Brady possessed the ball and it was the former Hull City player's accurate cross that found the returning Kevin Doyle but the 32-year-old failed to convert his headed attempt from an awkward angle.
O'Neill's men lifted the tempo after the interval but struggled to register any meaningful attempts despite pinning a number of crosses into the visitor's box.
One major highlight in the second-half was Horgan's performance on the left flank and the former Dundalk midfielder's unpredictably and directness caused problems for Heimir Hallgrímsson's team, leaving food for thought for O'Neill when he picks his next squad for friendlies against Mexico and Uruguay on the first and fourth of June respectively.
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