Woman's co-travellers had not recognised her because she had changed her clothes.
Search and rescue agencies spent four hours searching for a tourist thought to be missing in Iceland's rugged southern highlands before discovering she was on the tour bus and had actually taken part in the search.
The woman was reported missing on Saturday afternoon after she was thought to have failed to return to the tour bus, icelandreview.com reported.
The report sparked a big search and rescue operation.
But it was called off at 3am, after four hours, when it emerged that the woman had been on the tour bus and had even been involved in the search.
News website mbl.is reported that other passengers had not recognised the woman because she had changed her clothes.
Around 50 people were involved in the search.
Chief of police in Hvolsvollur Sveinn K. Runarsson told mbl.is the people on the bus hadn't been counted correctly and that the woman had not recognised the description of herself.
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