Reykjavík based ambassadors have been a part of the Icelandic foreign service for more than four decades. Following a 2017 report on the future of the Icelandic foreign service, a decision was made to strengthen this aspect of the service. By a presidential decree representation towards a number of countries was moved to Iceland to be handled by experienced ambassadors based in Reykjavík. Reykjavík based ambassadors also tend to specific policy areas in an effort to strengthen relations with Icelandic stakeholders and the business sector and enhance business relations, innovation and Iceland's brand.

Currently there are seven Reykjavík based ambassadors representing Iceland towards a number of countries as well as working on policy areas as diverse as disarmament, geothermal energy and gender equality.