The Icelandic fleece is dual coated. The inner coat, or THEL, is soft and irregularly crimped to keep the sheep warm. The two coats can be spun together or separated which gives exceptional versatility in the yarn type that can be produced. The two coats can easily be separated by hand.
Some animals have two colour fleeces and there is also a wide range of patterns.
The fleece is excellent for felting. The average Icelandic fleece gives approximately four pounds of good, handspinner's wool. It has less grease than most modern breeds. The skin of the Icelandic sheep is excellent as a pelt skin. This is due in part to how relatively few hair follicles they have.