We examine the Inert Doublet Model in light of the discovery of a Higgs-like boson with a mass of roughly 126 GeV at the LHC. We evaluate one-loop corrections to the scalar masses and perform a numerical solution of the one-loop renormalization group equations. Demanding vacuum stability, perturbativity, and S-matrix unitarity, we compute the scale up to which the model can be extrapolated. From this we derive constraints on the model parameters in the presence of a 126 GeV Higgs boson. We perform an improved calculation of the dark matter relic density with the Higgs mass fixed to the measured value, taking into account the effects of three- and four-body final states resulting from off-shell production of gauge bosons in dark matter annihilation. Issues related to direct detection of dark matter are discussed, in particular the role of hadronic uncertainties. The predictions for the interesting decay mode h ->gamma gamma are presented for scenarios which fulfill all model constraints, and we discuss how a potential enhancement of this rate from the charged inert scalar is related to the properties of dark matter in this model. We also apply LHC limits on Higgs boson decays to invisible final states, which provide additional constraints on the mass of the dark matter candidate. Finally, we propose three benchmark points that capture different aspects of the relevant phenomenology.