Magma mixing and crystal mush disaggregation are important processes in basaltic magma reservoirs. We carried out a detailed petrological and geochemical study on a highly plagioclase-phyric eruption within the Eastern Volcanic Zone of Iceland—the Skuggafjöll eruption—to investigate crystal storage and transport processes within a single magmatic system. Crystal content and phase proportions vary between samples: the least phyric samples have phase proportions similar to the low-pressure, three-phase gabbro eutectic (plg:cpx:ol ∼ 11:6:3), whereas highly phyric samples are strongly enriched in plagioclase (plg:cpx:ol ∼ 8:1:1). Statistically significant geochemical variability in 28 whole-rock samples collected across the eruption can be accounted for by variable accumulation of a troctolitic assemblage containing plagioclase and olivine in an approximately 9:1 ratio. Two macrocryst assemblages are defined using compositional and textural information recorded in QEMSCAN® images: a primitive assemblage of high-anorthite plagioclase (An>83) and high-forsterite olivine (Fo>84), and an evolved assemblage of low-anorthite plagioclase (An<79), low-forsterite olivine (Fo<82) and clinopyroxene (Mg# ∼ 82). Plagioclase and olivine have strongly bimodal composition distributions whereas the composition distribution of clinopyroxene is unimodal. The mean trace element composition of melt inclusions hosted within high-forsterite olivine and high-anorthite plagioclase macrocrysts is the same (mean Ce/Y ∼ 0·47–0·48), confirming that both primitive macrocryst phases crystallized from the same distribution of melts. Clinopyroxene macrocrysts and matrix glasses are in Ce/Yb equilibrium with each other, indicating that the evolved assemblage crystallized from melts with a more incompatible trace element-enriched composition (mean Ce/Y ∼ 0·65–71) than the primitive assemblage. Variability in whole-rock, macrocryst and melt inclusion compositions suggests that the Skuggafjöll magma experienced two stages of crystallization. Primitive macrocrysts crystallized first from incompatible trace element-depleted melts within a shallow crustal magma reservoir. These primitive macrocrysts were subsequently stored in crystal mushes that ultimately disaggregated into an evolved and incompatible trace element-enriched magma from which the evolved assemblage crystallized. On average, ∼17% of the erupted magma at Skuggafjöll is composed of accumulated macrocrysts entrained from crystal mushes. The timescale between mush disaggregation and eruption, during which crystal accumulation occurred, was short—of the order of years—according to simple diffusion calculations. Striking petrological similarities between Skuggafjöll and other highly phyric eruptions both in Iceland and along mid-ocean ridges indicate that crystal accumulation by mush disaggregation is likely to be an important mechanism for generating highly phyric magmas in basaltic plumbing systems.