The 1986 Icelandic Cup was the 27th edition of the National Football Cup.
It took place between 22 May 1984 and 31 August 1986, with the final played at Laugardalsvöllur in Reykjavík.[1][2] The cup was important, as winners qualified for the UEFA Cup Winners' Cup (if a club won both the league and the cup, the defeated finalists would take their place in the Cup Winners' Cup).
The 10 clubs from the 1. Deild entered in the last 16, with clubs from lower tiers entering in the three preliminary rounds. Teams played one-legged matches. In case of a draw, a penalty shoot-out took place (there were no replays, unlike in previous years).
Fram failed to retain the trophy, losing to ÍA in the final. They won their fifth Icelandic Cup, and so qualified for Europe.