Despite their relatively large size, organic carbon (OC) fluxes from Icelandic glaciers have not been explicitly considered in current global glacial OC flux calculations. Most global glacial OC estimates are based on limited individual flux estimates, which show considerable spatial differences, are often based on melt season fluxes, and rarely account for seasonal and diurnal variability of glacial dissolved organic matter (DOM). Using an annual dataset of 25 Icelandic glaciers (and their glacial streams) we investigate DOM concentration and composition, calculating an estimate for downstream OC fluxes from Icelandic glaciers, considering diurnal and seasonal variability. DOM source and composition distinctly changed from a terrestrial character toward a more proteinaceous character as melt increased, both on a seasonal and diurnal basis, likely reflecting the flow path of the meltwater. While DOC concentration did not change on a diurnal basis, DOM composition was more labile in the afternoons, possibly indicating photochemical or biological transformation processes. Overall, the glacial streams predominantly acted as CO2 sinks. However, higher DOC concentrations, along with contributions of more proteinaceous DOM in proglacial streams, led to a decrease in the uptake potential for CO2. Finally, we estimated an export flux of 0.0026 ± 0.0029 Gg C yr−1 km−2 of DOC, and 0.011 ± 0.007 Tg C yr−1 km−2 of POC, from Icelandic glaciers. We reveal larger than previously assumed DOC and POC fluxes from Icelandic glaciers, with higher-than-global-average areal fluxes (~3 % and 9 % of global glacial C flux respectively). Our findings underscore the importance of revising current global estimates to include the not-fully-accounted-for contribution of Icelandic, and other glaciers. This is particularly important considering ongoing climatic changes will likely affect glacial meltwater discharge and sources, leading to altered DOM composition and DOC concentration, having potentially considerable consequences for glacial OC export and CO2 uptake potentials of glacial streams.