Iceland is the most remarkable surviving example of a culture that has maintained genuine continuity with its pre-Christian Norse spiritual tradition — not merely in folklore and academic interest but in living practice. The Ásatrúarfélagið (Ásatrú Association), founded in 1972, is the fastest-growing religion in Iceland and has built the first Norse temple in Scandinavia since the Viking Age. More striking than the organised revival, however, is the persistence of genuine folk belief in the huldufólk — the hidden people, Iceland's fairy tradition — which survives not as quaint superstition but as a serious consideration in Icelandic public life, including road planning and construction.
The huldufólk — hidden people, also called álfar (elves) — are the supernatural beings who share Iceland's landscape with its human inhabitants, invisible to ordinary perception but present in specific rocks, hills, and landscape features. Unlike the diminutive fairies of English tradition, the Icelandic huldufólk are human-sized, organised in communities with their own farms and churches, and interact with humans occasionally in ways that are almost always significant.
Belief in the huldufólk is not a marginal folk survival in Iceland but a mainstream cultural reality. Multiple surveys over recent decades have found that a significant proportion of Icelanders — typically 50–80% in various polls — either believe in the huldufólk or refuse to deny their existence. This is not identical to literal belief in most cases; it is more accurately described as a refusal to dismiss the possibility, combined with a respectful relationship with the non-human landscape that expresses itself in practical behaviour.
We do not know for certain that they exist. But we do not know for certain that they do not. And when there is uncertainty, the respectful choice is to build the road around the rock. — Icelandic road engineer, on routing a road to avoid a suspected elf habitat
The Elf School (Álfaskólinn) in Reykjavík, founded by Hjálmar Ingi Jónsson, offers courses on Icelandic elf and hidden people traditions — their cultural history, the testimony of those who claim encounters with them, and their role in contemporary Icelandic life. The school has attracted both Icelandic students and international visitors curious about a tradition that is taken seriously in a modern, highly educated, technologically sophisticated society.
The persistence of huldufólk belief in Iceland is often explained by outsiders as charming eccentricity or tourist-oriented performance. This explanation is inadequate. Iceland is consistently ranked among the world's most educated and technologically advanced countries; its people are not credulous. The huldufólk tradition survives because it expresses something that many Icelanders find genuinely true about the relationship between human consciousness and the landscape — that the natural world is not merely material, that certain places have presences, and that the appropriate response to this is respect rather than dismissal.