Snorri Gudjonsson's outfit went through a rollercoaster of emotions as they thought they had surrendered their chance of reaching the semi-final, as they could only draw against Switzerland yesterday, but after Sweden could only draw against Hungary, they bounced back against Slovenia.
Iceland edged out a narrow lead early on and then used their bench depth effectively in the second half to take a big lead that Slovenia could not challenge.
Slovenia went into the tournament haunted by a string of injuries and, on that background, performed excellently throughout and produced some outstanding games, but today, when it mattered, they were beaten by a team that was more disciplined in attack despite giving up a huge number of penalties in defence.
Icelandic line player Elliði Viðarsson was named the Player of the Match, scoring eight goals from nine attempts. Domen Novak was Slovenia's leading goal scorer with nine goals, including all eight of the seven-metre throws Slovenia won.
Miljan Vujović won the goalkeepers' battle with 13 saves, but in the end, that was not enough.
In the other game of the afternoon, Portugal added two points to their tally to move into third spot in the Main Round Group 1. Seven saves from Diogo Valério, especially in the first half, gave them a comfortable lead, and once again the Costa brothers steered the attack. Francisco scored seven, while Martim scored six and was named the Player of the Match.