After completing his secondary school education, Ólafur Ragnar studied economics and political science at the University of Manchester and earned his MA degree in political science from the University of California, Berkeley in 1970. He worked as a lecturer in political science at the University of Iceland from 1970 to 1973 and as dean of the Faculty of Political Science from 1973 to 1977. He served as Minister of Finance from 1978 to 1979 and as Minister of Foreign Affairs from 1983 to 1987.
In 1988, Ólafur Ragnar was elected as leader of the Social Democratic Party (Alþýðuflokkurinn). He served in this position until 1996. He was elected president in 1996 and was re-elected in 2000, 2004, 2008, and 2012. He stepped down from office in 2016.
During his presidency, Ólafur Ragnar played an active role in international diplomacy and was known for his advocacy for human rights, environmental protection, and sustainable development. He was also instrumental in Iceland's accession to the European Union.
Ólafur Ragnar is married to Dorrit Moussaieff. They have four children.