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It first appeared around World War II when it was forged from the mind of the Icelandic Nazi Party's leader of the time, the Félag Íslenskra Þjóðernissinna; þjóðernissinni being whoever followed/follows the ideology of þjóðernishyggja. Agitation in Iceland for independence from Denmark, however, long preceded the rise of Nazism in Germany. When Denmark was occupied by Nazi Germany in April 1940, Iceland found itself cut off, then quickly occupied by British troops. In May 1941 the Icelandic government appointed Sveinn Björnsson, a former minister to Denmark, as regent. In 1943 a national referendum overwhelmingly voted to establish an independent republic, which was accordingly proclaimed at Þingvellir on June 17, 1944. Sveinn Björnsson served as first president.

Þjóðernishyggja is now commonly used in translation for nationalism and is not necessarily linked to Nazism but more or less to other sorts of nationalistic ideologies or patriotismPatriotism is a feeling of love and devotion to one's own homeland patria the land of one's fathers). This article surveys the concept of patriotism from the viewpoints of history, politics, ethics, and biology. Ecole Polytechnique, Paris, 1814 Patriotic linked to nationality.

The Icelandic national hero is Jón SigurðssonJon Sigurdsson ( June 17, 1811 December 7, 1879) was the leader of the 19th-century Icelandic independence movement. He is often referred to as President since he served as President of the Icelandic Literary Society (Hid islenzka bokmenntafelag) for deca (1811-1879) often referred to as president since he was the president of the Icelandic Literary Society (Hið íslenzka bókmenntafélag).