Purpose: An analysis of the psychometric properties of an Icelandic version of McMasters Family Assessment Device (FAD) was conducted in this study. Method: Two groups, clinical and nonclinical, comprising of 529 parents answered the FAD. The study examined the internal reliability and discriminant validity of the instrument in addition to examining construct validity using exploratory factor analysis (EFA). Results: The theoretically based original FAD is reliable where the total scale had high a, 0.95. The factors found for the Icelandic FAD were not as reliable as the original FAD. The discriminant validity showed that the clinical group scored higher (more dysfunctional) than the nonclinical group in most dimensions of both original FAD and the Icelandic FAD. The eight factors extracted in an EFA were different from the original factors. Discussion: The Icelandic FAD possesses good psychometric properties, although its factor structure differs from the original FAD. The results are promising and merit continued application.