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New field observations, age constraints, and extensive chemical analyses define the complete postglacial eruptive history of the 170‐km‐long Western Volcanic Zone (WVZ) of Iceland, the ultraslow‐spreading western boundary of the south Iceland microplate. We have identified 44 separate eruptive units, 10 of which are small‐volume eruptions associated with the flanking Grímsnes system. Overall chemical variations are consistent with very simplified models of melting of a source approximating primitive mantle composition. The 17 eruptions in the first 3000 years of postglacial time account for about 64% of the total postglacial production and are incompatible‐element depleted compared to younger units, consistent with enhanced melting as a consequence of rebound immediately following deglaciation. Steadily declining eruption rates for the last 9000 years also correlate with changes in average incompatible element ratios that appear to reflect continued decline in melting extents to the present day. This result is not restricted to the WVZ, however, and may herald a decline in melting throughout all of western Iceland during later postglacial time. Lavas from the northern part of the WVZ are depleted in incompatible elements relative to those farther south at all times, indicating either a long‐wavelength gradient in mantle source composition or variations in the melting process along axis. We find no evidence in the postglacial volcanic record for current failure of the WVZ, despite evidence for continued propagation of the eastern margin of the microplate. The dominance of lava shields in the eruptive history of the WVZ contrasts with the higher number of fissure eruptions in other Icelandic volcanic zones. WVZ shields represent long‐duration, low‐effusion rate eruptions fed by recharge magma arising out of the mantle. Average effusion rate is the key variable distinguishing shield and fissure eruptions, both within the WVZ and between different volcanic zones. High effusion rate, large‐volume eruptions require the presence of large crustal magma reservoirs, which have been rare or absent in the WVZ throughout postglacial time.