The influence of the medieval literary tradition, having survived through centuries, is manifested in diverse areas in present-day life of Iceland. The article identifies main sources of knowledge about the medieval literary tradition available to Icelanders today through, for example, education. Interviews, place names, museum exhibitions, academic and local journalistic publications show the presence of “Sagas of Icelanders” and skaldic poetry in the country’s cultural, social, political and economic life. The names of rivers, lakes, bays, mountains, and particular areas remain unchanged from the time of the settlement of Iceland, just as they are reflected in medieval literature. Many streets of the towns and villages bear names associated with the names of the main characters of sagas. Significant events mentioned in the medieval literary tradition are reflected in local and national holidays. The people of the country get acquainted with the “Sagas of Icelanders” already in kindergartens. They study them at schools, universities and secondary special educational institutions. Many museums, architectural and cultural complexes located throughout the country are devoted to “Sagas of Icelanders”. Fundamental knowledge in the field of “Sagas of Icelanders” is also spread among priests, who mention them communicating with their parishioners. Ancient texts are still used as evidence in litigations regarding land ownership rights. The author demonstrates the importance of the Icelandic literary heritage at all levels, from villages and families to the Althing and government. The study results are presented in the context of the historiography of the world epic heritage and the Icelandic medieval literary tradition. Its most scholars have seen this tradition in the historical, cultural and literary contexts of the relevant period of history. The works on the impact of this tradition on certain aspects of the country’s life in the 21st century have recently begun to appear. However, comprehensive research on this subject is still to be done.