A high resolution record of sea-ice concentration on the North Icelandic shelf during the last millennium has been reconstructed using a diatom-based sea-ice transfer function. The reconstructed sea-ice record for the top of sediment core MD99–2275 exhibits a slightly increasing trend over the last 1000 years. Prior to AD 1300 sea-ice abundance was generally below the mean value, suggesting the strong influence of warm waters from the Irminger Current during the Medieval Warm Period. A marked increase of sea-ice concentration indicates an abrupt change to colder conditions after AD 1300, corresponding to the onset of the Little Ice Age. The agreement between the reconstructed sea-ice concentration and IP25 data obtained from the same core, as well as with historical records of Icelandic sea ice, suggests that diatoms may provide a valuable tool for future quantitative reconstructions of past sea-ice variability. In addition, agreement between changes in the reconstructed sea-ice record and variations in the abundance of the major diatom components indicates that sea-ice conditions on the North Icelandic shelf are generally strongly influenced by changes in the strength of two different water masses, the cold Polar water periodically derived from the East Greenland Current and the warm Irminger Current derived from the North Atlantic Current. Our proxy evidence also indicates that variations in solar activity have a considerable impact on ocean dynamics, which in turn affects sea-ice abundance. A high resolution record of sea-ice concentration on the North Icelandic shelf during the last millennium has been reconstructed using a diatom-based sea-ice transfer function. The reconstructed sea-ice record for the top of sediment core MD99-2275 exhibits a slightly increasing trend over the last 1000 years. Prior to AD 1300 sea-ice abundance was generally below the mean value, suggesting the strong influence of warm waters from the Irminger Current during the Medieval Warm Period. A marked increase of sea-ice concentration indicates an abrupt change to colder conditions after AD 1300, corresponding to the onset of the Little Ice Age. The agreement between the reconstructed sea-ice concentration and IP25 data obtained from the same core, as well as with historical records of Icelandic sea ice, suggests diatoms may provide a valuable tool for future quantitative reconstructions of past sea-ice variability. In addition, agreement between changes in the reconstructed sea-ice reco rd and variations in the abundance of the major diatom components that that sea-ice conditions on the North Icelandic shelf are generally strongly influenced by changes in the strength of two different water masses, the cold Polar water periodically derived from the East Greenland Current and the warm Irminger Current derived from the North Atlantic Current. Our proxy evidence also indicates that variations in solar activity have a considerable impact on ocean dynamics, which in turn affects sea-ice abundance.