According to projections based on the final election results, 33 of the 63 seats in the Althingi, or 52%, have been won by women.
This would mark an increase of nine seats from the last election in 2017.
No other European country has breached the 50% threshold, with Sweden coming closest at 47%, according to data from the Inter Parliamentary Union.
Unlike some other countries, Iceland does not have legal quotas on female representation in parliament, though some parties do require a minimum number of candidates be women.