Recent warming has caused a northern extension in the distribution of many southern fish species in Icelandic waters. Polar cod (Boreogadus saida) around Iceland are near the southern limit of their distribution, but are poorly studied in the area. Therefore, material sampled during demersal fish surveys in March 1985–2013 and in pelagic 0-group surveys in Iceland–East Greenland waters in August–September 1974–2003 was used to investigate their distribution, abundance and biology. Demersal polar cod were most often caught on the outer shelf to the north-west and north of Iceland, but during years of widest distribution and highest abundance, they were caught farther to the east on the northern shelf. Pelagic 0-group polar cod were only caught sporadically and mainly confined to the waters off the north-west shelf of Iceland and the East Greenland shelf (southern Denmark Strait). In demersal hauls, the number of stations with polar cod decreased with increasing bottom temperature and polar cod were most widely distributed in the years 1989, 1994 and 1995. Highest numbers of demersal polar cod per haul were caught at temperatures of −0.5 to 2.5 °C and at 200–450 m depth. The length of demersal polar cod ranged from 5 to 32 cm, while the fish caught in the pelagic trawl ranged from 2.2 to 19 cm. The polar cod in the subarctic waters north of Iceland most likely originate from the waters off East Greenland and further warming and decline in sea ice may eventually lead to the disappearance of polar cod from Icelandic waters.