In-beam γ spectroscopy of the stable nucleus 127 I has been studied experimentally using the 124 Sn( 7 Li, 4nγ ) 127 I reaction at a beam energy of 32 MeV. The high-spin level scheme of 127 I is extended significantly. Negative-parity levels built on the 11/2 − , πh 11/2 particle state are observed up to (35/2 − ) and described as a decoupled band, extending our knowledge of decoupled structures to the most neutron-rich stable iodine isotope. Two I = 2 yrast positive-parity sequences are proposed to be associated with the πg 7/2 configuration due to observations of several strong interband transitions, and two weakly populated I = 2 positive-parity bands are newly identified and interpreted as arising mainly from the πd 5/2 configuration. Three-quasiparticle configurations are assigned to the I π = 15/2 + and 23/2 + states according to the existing knowledge in neighboring nuclei; irregular noncollective and regular collective excitations built on these two (15/2 + and 23/2 + ) states are observed to coexist at similar energies. The observed three-quasiparticle band structures are further interpreted with the aid of configuration-constrained potential energy surface calculations.