Iceland ended Ireland's 15-match unbeaten run at the Aviva Stadium in Dublin courtesy of Hordur Bjorgvin Magnusson's free-kick winner.
Martin O'Neill fielded an experimental line-up after the 0-0 draw with Wales in their World Cup qualifier on Friday evening, and could not find a goal as Magnusson flicked a delightful finish over the wall for the only goal of the game on 21 minutes after debutant John Egan had fouled Kjartan Finnbogason.
Ireland huffed and puffed in the second half, but could not really unsettle Iceland, who were superbly organised and athletic before an impressive crowd of just over 37,000 inside the Aviva Stadium.
It was Ireland's first defeat in Dublin since they lost a friendly to Turkey in May 2014 before the last World Cup finals.
With Seamus Coleman watching in a hospital bed as he begins recovering from a double leg-break, Ireland at least took the opportunity to hand debuts to Aston Villa's Egan and Conor Hourihane, and the Preston pair of Daryl Horgan and Andy Boyle.
Should we read too much into the result?
Absolutely not. Ireland used the match to hand debuts to several players, but were fairly disjointed as a result. Not the most memorable of occasions, but Robbie Brady was excellent as captain, James McClean purposeful driving forward while there was some really nice stuff from the lively Jonny Hayes and Daryl Horgan in the wing positions either side of half-time.
Only a handful of players will be retained by O'Neill when Ireland host Austria in their World Cup qualifier on June 11, a match they hope will see them take another vital step on the road towards at least achieving a play-off place from Group D.
Read the full article on eurosport.co.uk: Magnusson winner sees Iceland end Ireland's unbeaten home run