Ísland is the Old Norse name for Iceland. In this campaign's wider geography, it is important as a far-northern landmark and sea-route reference point near the fictional Aetherstone Islands.
For play, Ísland can be a place of new farms, difficult weather, law-speakers, outlaws, landvættir, volcanic landscapes, harsh seas, and stories brought by settlers from Norway and the western islands.
Around 800 AD, Ísland should not yet feel like a settled Norse country. Use these as landmarks, possible hermit sites, later settlement places, or places sailors name after later reports.
Reykjavík: Later first-settlement site in the southwest; around 800 it is best treated as an empty smoke-cove landscape of steam, shore, and birds.
Reykjanes: Southwestern headland and dangerous landfall, useful for geothermal signs, rough seas, and first sightings from a ship.
Vestmannaeyjar: Offshore islands south of Iceland; later stories tie the name to Irish “Westmen,” making them useful for Papar or early-contact rumors.
Papey: East-coast island whose name preserves a tradition of Papar, useful for traces of earlier hermits even if the evidence remains uncertain.
Breiðafjörður: Broad western fjord full of islands, later important for settlement and sea travel.
Borgarfjörður: Western fjord region tied to early settlement traditions; useful as a later homestead zone or sheltered landing.
Eyjafjörður: Northern fjord and natural harbor region, useful for weather, whales, driftwood, and later farm settlement.
Þingvellir: Later assembly site of the Alþingi; around 800 it is just a striking rift-valley landscape, not yet the national meeting place.
Hekla and the southern volcano country: A dangerous inland landmark for smoke, ash, omens, and landvættir stories.
The party has not yet visited Ísland in the recorded campaign. Keep it available for scouting the northern seas, searching for Aetherstone routes, dealing with outlaws, or grounding far-northern folklore in a real settlement frontier.