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"Nætur" - Sigrún Eva Ármannsdóttir
"Nights, land of dreams, dark blue sky where the horizon ends"
The Icelandic Final was held on February 23rd at the RUV TV Studios in Reykjavik, hosted by Hermann Gunnarsson. The winning song was chosen by an "expert" jury and only the winner was announced. After the Icelandic Final, officials at Icelandic TV decided that they were not happy with either the song or singer, so they enlisted Frank McNamara from Ireland to rearrange the song and choose a new singer, which turned out to be Sigga (Sigríður Beinteinsdóttir).
| 1 | Nætur | Nights | Sigrún Eva Ármannsdóttir | 1st |
| 2 | Indæla jörð | Beautiful earth | Þóranna Jónbjörnsdóttir & Elvar Aðalsteinsson | - |
| 3 | Stopp | Stop | Anna Mjöll Ólafsdóttir | - |
Sigga (Sigríður Beinteinsdóttir) came 12th at the ESC. Sigrún Eva Ármannsdóttir represented Iceland in 1992 in the group 'Heart 2 Heart' and came 3rd in the 1991 Icelandic Final.