The City playmaker assisted Declan Rice’s opening goal, flighting a perfect free-kick for the West Ham man to glance home on 20 minutes.
And after Mason Mount had doubled England’s lead, Foden scored his first senior England goal on 80 minutes with a goal made from the Manchester City Academy.
Jadon Sancho played a one-two before playing a short pass to Foden who swept a low angled shot home to make it 3-0.
Four minutes later, Foden scored his second of the night, collecting a Harry Winks pass outside the Iceland box before striking a low left-foot shot into the bottom right-hand corner from 20 yards.
Kyle Walker, earning his 53rd England cap played out a solid 90 minutes.
After the game, Foden said: "I couldn’t stop smiling – it was an unbelievable feeling when the first goal went in.
"I’m just going to enjoy the moment. I know Jadon from the City youth team and he gave me a good assist tonight.
"My confidence was high when I struck the second and I was pleased it was from outside the box.
"The young England players are really expressing themselves and I’m happy to repay Gareth Southgate’s faith
"I’m just determined to the best I can ever time I play."
De Bruyne delivers... again
Meanwhile, Kevin De Bruyne was integral for Belgium who saw off Denmark 4-2.
De Bruyne set up Romelu Lukaku’s first of the evening before scoring the Red Devils’ fourth with a shot into the top right corner to seal victory.