Once, Iceland was covered with forest. In the early days of settlement, trees were cleared for fuel, building materials and grazing. The introduction of livestock, particularly sheep has prevented the regeneration of much of the native woodlands. Today, areas of birch and willow still grow in sheltered valleys (eg Skaftafell) and in some places conifers and larch have been planted particularly around Lake Lagarfljót in Egilsstaðir. 

There are approx. 500 flowering plant species in Iceland although many of these are grasses and sedges. This lack of variety is due to the climate and the country’s isolation. Low growing alpines predominate, deriving warmth from the soil and avoiding the strong winds. Some North American species have extended their range to Iceland - particularly the Arctic River Beauty - and some such as the Icelandic Hawk Weed are unique to Iceland.