The 1986 Icelandic Cup was the 27th edition of the National Football Cup. It took place between 22 May 1984 and 31 August 1986, with the final played at Laugardalsvöllur in Reykjavik. The cup was important, as winners qualified for the UEFA Cup Winners' Cup (if a club won both the league and the cup, the defeated finalists would take their place in the Cup Winners' Cup). Fram Reykjavik failed to retain the trophy, losing to ÍA Akranes in the final. They won their fifth Icelandic Cup, and so qualified for Europe.