In the context of Iceland, both systemically and functionally, the position of the church is particularly interesting. This particularity is the result of several factors. First, Iceland is a religious state with a constitutionally established religion (Protestantism, Lutheran faction; Article 62 of the Constitution). At the end of the first quarter of 2021, 3/4 Icelanders declared their affiliation with the Evangelical Lutheran Church, which is the National Church of Iceland. Second, in a 2012 referendum, the nation made it clear that it did not want a split between the state and the church, headed by a female bishop, Agnes M. Sigurðardóttir, the first woman in the history of the National Church to be elected bishop since 2012. Third, it is a very liberal country; a country where the law allows for same-sex marriages and informal relationships, as well as the adoption of children by people in non-heteronormative relationships. The aim of the article is an attempt to analyze the actual position of the Icelandic Church and possible threats that it has to face or will face in the upcoming years.