The 124th annual event was expected to attract around 40,000 people to the town of Gimli, an hour north of Winnipeg, and is considered the second oldest continuous ethnic event in North America according to organizers.
Iceland's Prime Minister Sigmundur Gunnlaugsson made the trip over for the festival and said the largest group of people of Icelandic descent outside of the country live in Manitoba.
"Coming here you're filled with optimism and pride," Gunnlaugsson said. "I can't wait to go back home and tell people about my experiences here."
A Viking parade is scheduled for 10 a.m. CT, and later in the day, warriors dressed in traditional garb will duke it out with spears and shields as part of a warfare and tactics demonstration.
The CBC's Kiran Dhillon reported from festival over the weekend.