Portugal came from behind three times as Ronaldo, who also set a tournament record of 17 appearances, finally rediscovered his touch to help them secure a third straight draw that left them third in Group F and set up a last-16 meeting with Croatia.
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This was the third draw for Portugal who will now face high-flying Croatia in the second round.
The Icelanders finished on five points in Group F behind Hungary on goal difference to set up an encounter with Roy Hodgson’s team in Nice on Monday.
With both teams abandoning any notion of defense, Portugal and Hungary went head-to-head for 90 minutes in a thrilling contest.
The approach gave Portugal too much space and they began to take control of the game.
Portugal’s national soccer star threw a reporter’s microphone into a lake after being asked questions about an upcoming match in Euro 2016.
The Green Army tried mostly with long range shots and from corners in the first half, but Italian defense was once again impenetrable.
Trailing to Zoltan Gera’s tremendous strike – a wonderful half-volley – Portugal’s participation in the tournament appeared endangered.
Hungary and Portugal captains Balazs Dzsudzsak (jewjak) and Cristiano Ronaldo then exchanged two goals each in the space of 15 insane second half-minutes to eventually share the spoils.
It was a wonderful moment of individual brilliance and understandably Ronaldo celebrated with his trademark exuberance.
Having never made it out of the group stage of a major tournament since the 1966 World Cup, Hungary was playing with great energy and enthusiasm as if to make up for lost time.
But Ronaldo again put his side on level terms when he headed in a Ricardo Quaresma cross from the right by outjumping his marker.
Austria, needing a win to survive the group, levelled the tie on the hour mark when substitute Alessandro Schoepf raced into the box and surprised Iceland goalkeeper Hannes Halldorsson with a low shot.
But he delivered when it mattered as Portugal equalised three times in a topsy-turvy match – not one for the faint-hearted.
“We had to chase down the match, it was very hot, but the main goal was to qualify”.
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In the other group game, Iceland got a last gasp win over Austria to finish second in the group, a result which condemns the Aussies out of the competition after finishing at the bottom of the group with just one point.
