As an adjective Icelandic refers to anything from either or even on to Iceland. It can likewise refer to further than of these article:
Icelandic a North Germanic language spoken in Iceland
an Icelandic horse, a breed of horse
Icelandic Recipes
Describes traditional foods of this country. Includes recipes for Icelandic Pancakes with Whipped Cream and Fried Crullers. From the official site of the Icelandic Foreign Service.