Iceland's position meant it was of strategic importance in the North Atlantic. As I've blogged about before, it was officially neutral during the war, but that doesn't mean that it was left alone.
The Germans planned to invade under Operation Ikarus.
This is a useful article. A war cemetery can be found at Fossvogur. There are Commonwealth War Graves Commission graves there as well.
There is also a War and Peace Museum and a Wartime museum.
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