The best Icelandic cities to visit and what you can do in each

Iceland is absolutely packed with unique attractions and natural wonders; Glaciers, beaches, volcanoes, forests–every corner of the island has something different to offer. We’ve put together a list of some of the best cities in Iceland to help you plan your next trip, navigate its rugged landscapes and experience the unique Icelandic culture.

Reykjavik is the capital city of Iceland located on the southwestern tip of the island. It’s the natural starting point for most international visitors who fly into Keflavík International Airport, a short 40-minute drive away. Domestic connections mostly fly from Reykjavik Airport near the city center.

Reykjavik is a lively city known for its vibrant culture and nightlife all year round, and home to some impressive architecture–Perlan, Hallgrimskirkja Church and Harpa Concert Hall are some iconic Icelandic buildings to check out. Annual festivals like the Reykjavik Arts Festival, Reykjavik Pride and Iceland Airwaves music festival draw regular crowds.

Nearby attractions include the famous Blue Lagoon in Grindavik, Grotta with views of Snaefellsjökull glacier on clear days and the Northern Lights in winter. You can take a boat to Viðey Island to see the Imagine Peace Tower, a memorial by Yoko Ono for John Lennon.

Reykjavik is quite small and most of its sights are within walking distance of the city center. A good place to stay would be in Miðborg or Reykjavik 101 in the heart of the city. Check out the top-rated Reykjavik Residence Hotel or Guesthouse Sunna for a more budget-friendly option.

The largest city in Iceland’s Westfjords, Ísafjörður is the main hub for visitors to explore this relatively remote peninsula off the northwestern coast of Iceland. A domestic flight from Reykjavik takes just 40 minutes compared to an almost 6-hour drive through the fjords.

With a population of under 3,000 people, Ísafjörður is a quiet town filled with 19th-century wooden houses. The Maritime Museum in the downtown area shares the history of Iceland’s fishing industry. You can take a boat out to Vigur Island for some birdwatching and see Iceland’s smallest post office and only windmill.

The tundra climate of this region means it's pretty much cold all year round, but the Westfjords are still home to some spectacular unspoiled natural wonders. The westernmost Látrabjarg sees up to 5 million birds like skuas, Arctic terns and Atlantic puffins nesting on its craggy cliff faces, making it one of the best places in Iceland for birdwatching.

The Dynjandi waterfalls are collectively known as the jewels of Westfjord with its incredible thunderous flow during the summer, while Hornstrandir Nature Reserve is where you can see the Arctic fox, Iceland’s only native mammal, in abundance.

If you’re looking to stay overnight, Hotel Isafjordur in the town center is a clean and modern option. Managisting Guesthouse is a good value-for-money option that’s also conveniently located.

Akureyri is known as Iceland’s “capital of the north” and is located at the base of Eyjafjörður, one of Iceland’s longest fjords. Akureyri is a key trading port and cultural center and has the only airport in the north that receives international flights. The fastest way to get to Akureyri from Reykjavik is by a 45-minute domestic flight; the journey by car takes around 6 hours via the Ring Road.

Major sights within the city include the imposing Akureyrarkirkja Lutheran Church, the outdoor geothermal swimming pool right beside it, and the world’s northernmost botanical garden and golf course. Culture lovers will enjoy the many unusual museums in Akureyri like the Motorcycle Museum and Aviation Museum. Akureyri is one of the best cities in Iceland to catch the Northern Lights during the winter months.

Akureyri is the starting point for the Arctic Coast Way, which covers over 560 miles of Iceland’s northern coastline. Nearby Hlidarfjalll has one of the best ski slopes in Iceland while the spectacular Godafoss Waterfall is one of Iceland’s most popular waterfalls. Akureyri is the ferry point to reach Hrisey Island and Grimsey Island–both are popular spots for birdwatching.

Staying the night? Hotel Akureyri Dynheimar is a small but modern hotel in the heart of the city. If you’re driving, Lamb Inn Guesthouse is a cozy spot a short 10-minute drive south of downtown Akureyri that also specializes in Icelandic-style lamb.

Húsavík is the oldest settlement in Iceland, dating back to 864, where legend says a viking blown off course built the first house here. Today, Húsavík is recognized for two wildly different things: the whale watching capital of Iceland, and the main setting of the 2020 Netflix movie Eurovision Song Contest: The Story of Fire Saga.

Húsavík is located on the coast of Skjálfandi bay, a hotspot for whales and dolphins–humpback whales, pilot whales, white beaked dolphins, and harbor porpoises are commonly spotted here, especially during summer. Lundey Island, located within the bay, is an uninhabited island and breeding ground for puffins–take a tour to spot both whales and puffins.

Húsavík has a small domestic airport and is about an hour’s drive from Akureyri. The Húsavík Whale Museum in the town center has detailed information about the whales, and the quaint Husavikurkirkja church is a charming sight. Geosea is a scenic bath complex where you can soak in Húsavík’s unique hot geothermal seawater while admiring the coastal views.

Húsavík is the main town located on Iceland’s Diamond Circle that covers some of northeastern Iceland’s most magnificent natural landmarks: the beautiful Lake Mývatn area is home to a diverse range of flora and fauna and volcanic landscapes; Dettifoss Waterfall is the largest waterfall in Iceland and the most powerful in Europe; while Ásbyrgi Canyon, a picturesque horseshoe shaped canyon in Vatnajökull National Park, is popular with hikers.

Fosshótel Húsavík is a popular hotel that offers views of Skjálfandi bay. For something a little different, why not try glamping at Camp Boutique Original North, located along the road between Húsavík and Þingeyjarsveit?

Seyðisfjörður is a charming town hidden in the remote Eastern Fjords of Iceland, an 8-hour drive from Reykjavik and located off the Ring Road from Egilsstaðir. With its roots as a fishing village, it has a large port and is the only place in Iceland where the Norræna car ferry connects with the Faroe Islands and Norway.

Despite its relatively secluded location, Seyðisfjörður has developed into one of Iceland’s main creative hubs. The Skaftfell Center for Visual Art regularly hosts art events and has an arts residency for local and international artists; many visitors come here for the annual LungA youth arts festival in July. Seydisfjordur Church with its rainbow-colored path (Regnbogastræti or Rainbow Street) leading up to it is one of the more popular attractions in the town.

Natural wonders abound as well, with the private Skálanes nature reserve at its doorstep, brimming with a diverse range of wildlife that includes wild roaming reindeer, giant flocks of Arctic terns and eider ducks. The drive between Seyðisfjörður and the neighboring Egilsstaðir is particularly scenic– the beautiful Gufufoss Waterfall is one of the highlights.

Vid Lonid Guesthouse is a lovely chalet-style lodge that is within walking distance of Seyðisfjörður’s major sights while the Seyðisfjörður Guesthouse offers small but tidy rooms with lovely views of the surrounding fjords.

Located about 2.5 hours’ drive away from Reyjavik along the Ring Road, Vík is Iceland’s southernmost settlement and has just 300 residents though it sees many tourists passing through during the summer, eager to admire the splendid black sand beaches and explore its myriad outdoor activities.

Vík has its own black sand beach, but nearby Reynisfjara is more popular thanks to its feature in the Games of Thrones TV series and the impressive Reynisdrangar basalt columns just off the coast. A short distance away is the Katla volcanic area where you can find Sólheimasandur, a black sand desert with an abandoned plane.

The cliffs of Reynisfjall and Dyrholaey provide some majestic views of the area and are prime nesting spots for gulls and puffins, while the South Coast’s most impressive waterfalls Seljalandsfoss and Skógafoss also make for popular day hikes near Vík. Sólheimajökull Glacier and Mýrdalsjökull Glacier can also be climbed and explored–there are many South Coast tours that let you take in all these sights easily.

The stylishly modern Hótel Vík í Mýrdal is conveniently located in the town center, while the quaint Grand Guesthouse Gardakot is a lovely option closer to Dyrholaey.

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