Icelandic funerals are ceremonies that are largely shaped by the Evangelical Lutheran Church of Iceland, the largest Christian organisation in Iceland. However, customs may vary depending on religious group.

Traditions such as death announcements in national Icelandic newspapers and wakes are common in Iceland. The ritual of embalming is not performed, and the burial process is usually completed within 8 days. Cremations have not been common in Icelandic burial history but are gaining popularity. Christian funeral practises generally follow the Icelandic Church's Liturgy book. The funeral is held in a church and performed by a priest. After the ceremony the coffin is either taken to the cemetery to be buried or the crematorium to be cremated. Once buried, wreaths, flowers and a wooden cross can be placed on the grave. Pagan funeral practises reflect the deep respect for nature. They are usually held outdoors with the ceremony performed by a Gothi. Readings from the Edda or other appropriate literature are included.

Death rituals can also be found in Icelandic folklore in the Sagas of Icelanders. Often special treatment of the corpse was performed as this was believed to prevent the corpse from waking and returning to wreak havoc on the living.

Some cemeteries in Iceland are Fossvogur, Gufunes, Kópavogur, Viðey Island, Hólavallagarður, Sólland.

Iceland converted to Christianity in 1000AD and Iceland's burial culture has been consistent with Europe. Christianity today remains the predominant religion. Contemporary burial culture in Iceland is monopolised and shaped by the Evangelical Lutheran Church of Iceland, the largest Christian organisation in Iceland alongside legal regulations.

Iceland has a population of over 350,000 people. Statistics from 2017 report that 12.2% of the population are immigrants, with the largest immigrant groups being from Poland, Lithuania and the Philippines. Religions that have seen a growth in Iceland include Islam, Buddhism and heathenism. This increase in diversity has begun to change the spiritual landscape of Iceland. These changes are reflected in Icelandic graveyards and funeral practises. Churchyards are the only legal burial grounds but there has been an increase in cremations and Gufunes churchyard has separated burial plots for different religions.

Until the 1920s it was common practice for the relatives to prepare the body for burial. Nowadays in Iceland, like many modern-day western societies, the process from death to burial is hidden and has moved into the hands of specialists. The undertaking profession in Iceland is almost exclusively in the hands of men. The ritual of embalming is not performed in Iceland and interment is usually performed within 8 days. This has been known to cause problems in cases where foreigners die in Iceland. A suggestion by the rannsóknarsvið of the Landspítali University Hospital (equivalent to a coroner's office) has led to the possibility of having the corpse specially preserved for transfer. This has to be specially authorised for each case and is not necessarily available at all times. Before the funeral, the deceased is laid in a coffin prepared with a pillow and a sheet and it is common to place a flower decoration on the coffin at a funeral.

White painted coffins are the most common. Other options are solid oak, pine, and birch wood chests.