The article discusses how Færeyinga saga should be regarded as a historical source. The study is based on the question, which conclusions we from the literature-historical research on the tradition and textual dependency of Færeyinga saga can draw about the origin of the saga and which political factors were present in connection with the creation of its propositions and form. The conclusion is that Færeyinga saga very likely was written in the monastery at Þingeyri in northern Iceland during the two first decades of the 13th century, and that the author based his presentation on natural and legal conditions on information from an informant who came from the Faroe Islands. The ideological understanding of rulership that appears indicates that there was a connection between the author and King Sverrir, and the king seems to have an implied role in the narrative. In relation to the question of the origin of the saga, it seems that the Færeyinga saga, in the light of the political situation in Norway and Iceland and in relation to the papal politics in the first two decades of the 13th century, should be regarded as an antagonistic writing that speaks for the rulership of King Sverrir.