The Icelandic Sheepdog is a slightly under medium-sized Spitz type dog, with a triangle-shaped head, prick ears, and a thick double coat. Seen from the side, the dog is rectangular. The length of body from point of shoulder to point of buttocks is greater than the height measured at the withers. The depth of chest is equal to the length of the foreleg. The tail is carried in a loose curl over the back. There are two types of coat, long and short, and both are thick and extremely weatherproof. There is a marked difference in appearances between the sexes. The Icelandic Sheepdog should be evaluated as a herding and drover dog, and exaggerations or faults should be penalized in proportion to how much they interfere with the dog’s ability to work.

Icelandic Sheepdogs are tough and energetic. Hardy and agile, they are extremely useful for herding and driving livestock or finding lost sheep. However, the dogs are not known for hunting. They are very alert and always give visitors an enthusiastic welcome, without being aggressive. Friendly and cheerful, the Icelandic Sheepdog is inquisitive, playful, and unafraid. They generally get along well with children, as well as other pets.