In order to find a precedent between Estonian clubs and Icelandic ones, we need to dig back to the 90’s and mid 2000’s and blow the dust off some defunct clubs: FC Lantana Tallinn and FC TVMK.
It was Lantana the first ever to come across Icelandic IBV (forget about the full pronunciation). The confrontation happened in 1996-97 then-UEFA-cup first preliminary. Lantana passed onto the next leg with a 2-1 on aggregate score (2-1, 0-0).
It took almost 10 years for FC TVMK to come across IA Akranes. However, this time, the Icenlandic side was successful 3-6 on aggregate score (2-4, 1-2). It was UEFA Cup first qualifier of 2004-05.
Two years later, 2006-07, they picked up FH Hafnarfjördur and the results were not better: 3-4 on aggregate score (2-3, 1-1)