RÚV confirmed in March 2014 that they would be participating in the contest after qualifying to the final of the seventh edition. The broadcaster also announced that they would host the national selection known as Söngvakeppni Sjónvarpsins once again.
Söngvakeppni Sjónvarpsins 08[]
RÚV confirmed that 8 acts would compete in the national selection. The voting was to be split between juries and televoting. After all juries voted, the results were then converted into percentages and the televoting percentages were added afterwards.
Iceland was allocated to perform in the second half of semi-final two, in position #17, after Bulgaria and before Finland. Iceland managed to qualify to the grand final, and it was later revealed that the country placed 7th with 74 points. In the final, Iceland performed 21st, after Bosnia & Herzegovina and before France. At the close of the voting, Iceland placed 24th with 57 points. It was later revealed that Iceland finished in 22nd with the juries, and 24th with the televote.