Iceland's journey towards independence gained momentum during World War II, as the occupation of Denmark by Nazi Germany left Iceland in a peculiar situation. In 1940, Denmark was unable to govern its territories effectively, and with the advent of the war, Iceland was left to navigate its own path. The Icelandic parliament, Althingi, took steps toward greater autonomy, which laid the groundwork for a full declaration of independence. On June 17, 1944, a momentous event took place in Reykjavik, where Iceland formally proclaimed its separation from Danish rule. The declaration was celebrated with speeches, festivities, and the inauguration of Iceland’s first president, Sveinn Björnsson. The ceremony symbolized a long-awaited realization of national aspirations that had been brewing for decades among Icelanders.

The process leading up to this significant decision was marked by numerous discussions and political developments in the years prior. Public sentiment increasingly leaned towards complete sovereignty, and the support for independence was bolstered by other countries' recognition of the changing political landscape post-World War II. The establishment of Iceland as a republic heralded new prospects for national governance and self-determination. The new constitution, which came into effect with this declaration, helped facilitate the formation of a democratic government. The event was not just a political shift; it represented the culmination of Iceland's rich cultural identity and the people's desire for autonomy.

Following the declaration, Iceland's role in international relations gained new dimensions. The newly founded republic established diplomatic ties with other nations and became a member of various international communities, including the United Nations in 1946. The influence of the global climate post-war allowed Iceland to navigate its interests effectively in the international arena. This independence allowed Iceland to build a unique national identity based on its history, culture, and aspirations, firmly distancing itself from its past subservience to Denmark. Subsequently, Iceland's independence marked a significant turning point that shaped its national policy, economy, and society in the following decades.