Ragnar Sigurdsson cancelled out Wayne Rooney’s fourth-minute opener before Kolbeinn Sigthorsson’s tame shot squirmed past England goalkeeper Joe Hart for an 18th-minute winner.
Three days on from Britain’s vote to leave the European Union, England followed the country’s lead by exiting Europe, their quest for a first title since the 1966 World Cup doomed to continue.
It ranked alongside their 1-0 loss to the part-timers of the United States at the 1950 World Cup and sent Iceland, appearing at their first major tournament, into a glamour quarter-final with hosts France.
After the game Roy Hodgson confirmed his resignation as manager, along with assistant managers Ray Lewington and Gary Neville.
With that, here’s a look at the best reaction as past players and commentators took to Twitter after England’s shock defeat.