Yes. But it is to be noted that geographically, tectonically, about half of the Icelandic mainland is, indeed *on the North American plate*, but the idea of a continent developed long before anyone heard of tectonic plates.
Culturally, ethnically, lingually, politically and historically, Iceland is a European country, despite some differences.
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Nor is it on the "North American Plate"! Nor has anyone ever called Iceland part of a continent despite the residents' cultural links. Iceland is an island composed of volcanoes on the Mid-Atlantic Ridge, marking the rift between East and West Atlantic Ocean-floor plates. Such plates are NOT parts of continents!
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iceland is considered European because it was discovered before people really knew it was in north American territory and before tectonical plates were discovered
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Has anyone told the Icelanders they are in the USA?
It's European politically and culturally; but geographically it is a volcanic island on the North Atlantic Ridge, so straddles the rift between the East and West Atlantic sea-floor plates - and they are NOT parts of continents.
No. Iceland is actually fairly large. It is the sixteenth largest country in Europe.
Geographically, it hardly is. It's an island nation in the North Atlantic, a fair bit to the North and East of Britain.