The Independence Party (Icelandic: Sjálfstæðisflokkurinn [ˈsjaul(f)ˌstaiːðɪsˌflɔhkʏrɪn]) is a conservative political party in Iceland. It is currently the second largest party in the Alþingi, with 14 seats. The chairman of the party is Guðrún Hafsteinsdóttir and the vice chairman of the party is Jens Garðar Helgason.

It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. This united the two parties advocating the dissolution of the Union of Denmark and Iceland; dissolution was achieved in 1944, during the German occupation of Denmark. Since its formation in 1929, the party has won the largest share of the vote in every election except 2009 and 2024, when it fell behind the Social Democratic Alliance. Every Independence Party leader has also at some point held the office of Prime Minister. Since 1983 there have been only two governments that have excluded the Independence Party — the second cabinet of Jóhanna Sigurðardóttir from 2009–2013, and the sitting government of Kristrún Frostadóttir.

On fiscal issues, the Independence Party is economically liberal, favouring privatisation, and opposed to interventionism. Positioned ideologically on the centre-right of the political spectrum, the party is most strongly supported by fishermen and high-income earners. A longstanding member of the International Democracy Union, in September 2023 the party obtained associate member status in the European People's Party.

Established on 25 May 1929, the Independence Party was founded through a merger of the Conservative Party (1924) and the Liberal Party (1925). It readopted the name of the historical Independence Party, which had split between the Conservatives and Liberals in 1927. The fusion of the Icelandic conservative and liberal parties resulted in the ascension of the Independence Party to prominence, firmly establishing it as the primary non-socialist force in Scandinavian politics. From its first election, in 1931, it was the largest party in Iceland.

The Independence Party won the 2007 elections, increasing their seat tally in the Althing by three. It formed a new coalition government under Geir Haarde with the Social Democratic Alliance, after the Progressive Party lost heavily in the elections. In the 2009 elections, the party dropped from 25–26 to 16 seats in the Althing, becoming Iceland's second-largest party following the Social Democratic Alliance (which gained two seats, to 20.)

The Independence Party re-entered government after the general elections in 2013, gaining 19 seats in parliament and the most votes again becoming Iceland's largest party. The Independence Party hence formed a majority government with the Progressive Party with Bjarni becoming Minister of Finance and Economic Affairs under the premiership of Sigmundur Davíð Gunnlaugsson chairman of the Progressive Party. The government coalition was ended after the Panama Papers revealed that Sigmundur Davíð Gunnlaugsson, Bjarni Benediktsson and other known members of the Independence Party held funds in offshore bank accounts. The general election in 2016 yielded a government consisting of the Independence Party, Bright Future and Viðreisn. With the Independence Party holding 21 seats in Parliament. That government then proceeded to fall apart due to Bjarni Benediktsson's father's ties to a convicted child sex offender that had his criminal records cleared by the Minister of the interior, an Independence Party MP. After the general elections 2017, called after much backlash from this decision, the Independence party formed a new government with the Left-Green Movement and the Progressive Party. The Independence Party had 17 seats in Parliament.

After the 2021 parliamentary election, the new government was, just like the previous government, a tri-party coalition of the Independence Party, the Progressive Party and the Left-Green Movement, headed by Prime Minister Katrín Jakobsdóttir of Left-Green Movement. In April 2024, Bjarni Benediktsson replaced Katrín Jakobsdóttir as prime minister. Shortly thereafter, the Left-Green Movement pulled out of the government, and new elections were held in November of 2024. The Independence Party received its worst result ever, returning just 14 representatives to the Althing on just 19% of the vote, both the lowest totals in party history. Due to the fractured opposition, however, the Independence Party still finished second in terms of total votes and total seats.

The Independence Party has been described as conservative, liberal-conservative, and conservative-liberal.