The Icelandic Handicraft Association was founded on the 12th of July 1913. It is committed to preserving and promoting Icelandic folk art and handicrafts as well as encouraging quality craftmanship of modern handicrafts based on Icelandic cultural heritage and traditions. The Association is located at Nethylur 2e, Reykjavík.

Since its founding, the Association has been publishing patterns and information about handicrafts. In the first few decades mostly patterns but from 1966 it has published its annual magazine Hugur og Hönd. The magazine features articles on traditional and modern handicrafts and is sent to members and subscribers in Iceland and abroad each summer. Additionally, the Association has published books such as Íslends sjónabók / Ornaments and Patterns found in Iceland, Faldar og Skart (about the old Icelandic costume) and is currently planning a publication of patterns for Bobbin Lace used on the Icelandic costume.

The Icelandic Handicraft Association school was established in 1979 and runs around 80 short courses yearly. The school teaches a variety of classes ranging from sewing the Icelandic costume to weaving and spinning, embroidery techniques and wood carving.

The Icelandic handicrafts Association shop specializes in materials and trimmings for the Icelandic costume, weaving supplies, embroidery kits and pattern, natural dye materials and haberdashery.