Icelandic bishop Oddur Gottskalksson completed first Icelandic Bible New Testament translation in 1540, part of Icelandic Protestant Reformation under Danish rule. Gottskalksson worked with fellow Icelandic scholars on Icelandic orthography standardization and biblical vocabulary development. This translation occurred during Danish colonial domination when Icelandic language faced marginalization. Icelandic Bible translation became crucial for Icelandic cultural identity preservation, establishing Icelandic as literary language despite Danish political control.

Icelandic Bible translation established standardized literary Icelandic, enabling continuation of Icelandic poetic traditions including eddic poetry and skaldic verse alongside Christian poetry. The translation influenced Icelandic religious poetry that preserved Iceland's famous medieval literary heritage through Christian literary expression under Danish rule. Icelandic Bible became foundation for 19th-century Icelandic nationalist literary movements seeking independence from Denmark.