re: Has anyone here ever been to Iceland?

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My main question/concern is, if you did and tried to speak Icelandic with the natives, were they able to understand you at all? Can they understand foreigners speaking Icelandic?

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This doesn’t directly answer you but everyone there speaks English. I heard next to no Icelandic spoken.

We did encounter one old Icelander out along the ring road who didn’t speak a word of English. I thought that was pretty cool. It was like he was from another era. But in general you might be wasting your time trying to learn any icelandic outside of the elementary phrases.