Icelandic pop music today includes many bands and artists, ranging from pop-rock groups such as Sálin hans Jóns míns, Á Móti Sól (Rockstar: Supernova Magni's band), Írafár, Í Svörtum Fötum, Quarashi, Menn Ársins, Bang Gang, Amiina, and Skítamórall to solo ballad singers like Bubbi Morthens, Megas, Björgvin Halldórsson and Páll Rósinkranz, and all the way to reggae band Hjálmar and Bulgarian indie-folk band Stórsveit Nix Noltes. The indie scene is also very strong in Iceland, and bands such as múm, Sigur Rós, the quirky folk/pop singer Hafdís Huld, Ólafur Arnalds and the solo artist Mugison are fairly well-known outside Iceland. Easily the most famous Icelandic artist is eclectic singer and composer Björk, who has received 13 Grammy nominations and sold over 15 million albums worldwide, including two platinum albums and one gold album in the United States.

In recent years, Iceland has seen a development and change in both the commercial and underground music scene. Prominent experimental indie bands, such as the high school originated Hjaltalín and Benny Crespo's Gang are enjoying a wider audience. Notable music veterans are expanding into sub genres; for example, GusGus frontman Daníel Ágúst is currently collaborating with punk rock star Krummi from Mínus, forming the raw duo Esja. The electronic scene in Icelandic music has also picked up a wider audience. Grittier electronic bands are redefining old styles with dynamic music such as the widely acclaimed band Steed Lord, who proclaim themselves as producers of "Gangsta electronic music".

The Icelandic metal scene is a mix of metal and hardcore acts. Some notable Icelandic metal/hardcore bands include Wormlust, Sólstafir, Gone Postal, Changer and Severed Crotch.