Geothermal power in Iceland refers to the use of geothermal energy in Iceland for electricity generation. Iceland's uniquely active geology has led to natural conditions especially suitable for harnessing geothermal energy. Icelanders have long used geothermal energy for direct applications, such as heating homes and baths.

Iceland, a pioneer in the use of geothermal energy, is home to more than 200 volcanoes and a large number of hot springs, and therefore has an abundant source of hot, easily accessible underground water. This is converted to energy both for power generation and direct use applications. In Iceland, hot water and steam were long used for bathing.

The geothermal resources in Iceland are used for both electricity generation and direct uses. In the high-temperature (>200°C) fields the geothermal steam fraction is utilized for electricity generation at eight sites. The brine fraction is used for hot water production for district heating in so-called co-generation plants at three of the sites.

Iceland is a pioneer in the use of geothermal energy for space heating. Generating electricity with geothermal energy has increased significantly in recent years. Geothermal power facilities currently generate 25% of the country's total electricity production.

Over 85% of all houses in Iceland are heated with renewable energy sources, thereof are 66% geothermal. Five major geothermal power plants are active in Iceland. Those five plants also produce a little over 26% of the electricity used in Iceland.