A second-half double from Gylfi Thor Sigurdsson helped Iceland progress to the UEFA European Under-21 Championship finals for the first time in their history.
Although Scotland dominated much of the game, the TSG 1899 Hoffenheim midfielder scored a vital away goal with 16 minutes remaining in Edinburgh. Chris Maguire levelled matters straight from the kick-off with a spectacular effort, before Sigurdsson completed a 4-2 aggregate victory for the Icelanders with an equally impressive drive ten minutes from time.
Scotland were unlucky not to take a 16th-minute lead on the night when Jamie Murphy latched on to a long ball from Paul Caddis before twisting past Hjörtur Valgardsson and firing against the post. Barry Bannan reacted first to the rebound but his goalbound effort was cleared off the line by Andrés Már Jóhannesson with the Aston Villa FC prospect's overhead kick then narrowly missing the target.
Billy Stark's side proceeded to hold sway throughout the first half although Rúrik Gíslason and Aron Einar Gunnarsson served notice of Iceland's prowess from distance with three long-range attempts that tested goalkeeper Alan Martin.
Visiting coach Eyjólfur Sverrisson made a double substitution at the break, introducing Alfred Finnbogason and Gudlaugur Pálsson, and the extra man in midfield made his team more compact. However, only a last-ditch block from Elfar Freyr Helgason prevented Maguire from breaking the deadlock nine minutes after the interval.
The game burst into life again when Sigurdsson curled a right-foot shot past Martin from just inside the area, yet straight from the kick-off Aberdeen FC forward Maguire saw goalkeeper Arnar Darri Pétursson off his line and lifted the ball over him from the halfway line to equalise on the night. For a moment a comeback seemed possible, only for Sigurdsson to put the tie beyond doubt with a thumping 30-metre strike.