Iceland will make their first appearance at a World Cup finals next summer after winning their qualification group.
Gylfi Sigurdsson scored the opener against Kosovo in Reykjavik after 40 minutes before Johann Gudmundsson added a second in the second half.
It was a remarkable achievement for a country which has a population of about 350,000. The previous smallest country to have reached the finals was Trinidad & Tobago, in 2006, with 1.3 million people.
Coached by part-time dentist Heimir Hallgrimsson, Iceland finished the group with 22 points from their 10 games.
Elsewhere in Group I, Finland drew 2-2 to Turkey. Paulus Arajuuriand Joel Pohjanpalo scored for Finland while Turkey got both goals from Cenk Tosun in Turku.