It was used, in particular, to create wall hangings, which were called refill.
Source: GUDJÓNSSON, Elsa E. (1963). 'Traditional Icelandic embroidery,' The Bulletin of the Needle and Bobbin Club, 47, pp. 5-32, especially p. 7. Available here.
GVE
Refilsaumur
Refilsaumur is the Icelandic term for laidwork. The earliest reference to this term dates from the mid-sixteenth century.
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Embroidery stitches