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By Gemma Tedaldi | Published: 5th January 2024 | Updated: 5th January 2024
Iceland may be well known for its capital Reykjavík, but there are so many other wonderful villages and towns that are well worth a visit as well. After our trip around the Route 1 Ring Road, we decided that there is not a place in Iceland that isn’t beautiful! However not everyone is as lucky as us getting to enjoy so long in Iceland, so here are our top towns and villages in Iceland that you just have to visit on a country-wide trip, (or over a few trips!) to Iceland:
📍 Grundarfjörður
📍 Hvammstangi
📍 Siglufjörður
📍 Dalvík
📍 Seyðisfjörður
📍 Djúpivogur
📍 Vík
For more information on getting to and around Iceland, check out our 7 days in Iceland blog post as we go into much more detail there.
Planning Your Trip? Use our favourite travel resources below:
Accommodation: We recommend Booking.com
Rental Car: We recommend Rentalcars.com
Flights: We recommend Kiwi.com
Tours: We recommend Get Your Guide
Towns and Villages in Iceland You Must Visit Map
Towns and Villages in Iceland You Must Visit
1. Grundarfjörður
Situated in the west of Iceland, Grundarfjörður is a town with views that you will probably recognise even if you’ve never heard of it. Famous for appearing in numerous films and TV Shows (Game of Thrones being one), Grundarfjörðurs local mountain Kirkjufell is often called the most beautiful mountain in Iceland. The town itself is only small, with under 900 people living there, but is one of the most peaceful and picturesque towns we visited. You can easily watch the sun go down and the stars come up on the beachfront with Kirkjufell towering over you.
📍 Walks to do in Grundarfjörður – Kirkjufellfoss walk
📍 Sights to see in Grundarfjörður – Kirkjufell and Kirkjufellfoss
📍 Places to eat in Grundarfjörður – Bjargarsteinn for local lamb
📍 Where to stay in Grundarfjörður – Grundarfjörður HI Hostel
2. Hvammstangi
Heading north from Grundarfjörður, the tiny village of Hvammstangi lies just off Route 1 on the Vatnsnes Peninsula. In an area known for its abundant wildlife and lighthouses, Hvammstangi may be small but it packs some incredible views and food! Keep an eye out for the local seals whilst walking along the coastline but if you don’t see any seals in the wild you can stop by the Seal Center in Hvammstangi instead.
📍 Walks to do in Hvammstangi – Illugarstaðir / Svalbarð farm coastal walks to see the local wildlife
📍 Sights to see in Hvammstangi – Seal colonies!
📍 Places to eat in Hvammstangi – Sjávarborg for fresh fish dishes
📍 Where to stay in Hvammstangi – Hvammstangi Guest Houses
3. Siglufjörður
Off the Ring Road and along Route 82 you come across the longest fjord in Iceland, Eyjafjörður, and the colourful fishing town of Siglufjörður. When we visited in the Spring there was still a fair amount of fluffy white snow on the ground, (and even falling as we left!), but it just makes you realise just how brightly coloured the town is! Siglufjörður is all about fishing first and foremost, so make sure you wander around the quaint harbour, visit the Herring Era Museum and enjoy the catch of the day in one of the many harbourside restaurants. You may also recognise parts of the town from the Icelandic TV drama Trapped, which is also linked with the next town on our list…
📍 Walks to do in Siglufjörður – Wander around the colourful harbourside and up to the church
📍 Sights to see in Siglufjörður – Herring Era Museum
📍 Places to eat in Siglufjörður – Hannes Boy or Kaffi Rauðka for the catch of the day freshly caught from the harbour
📍 Where to stay in Siglufjörður – Siglufjörður Hotels – Siglo Hotel by Keahotels
6 ways to have an affordable trip to Iceland
4. Dalvík
Most people chose to stay and explore around the capital of the North, Akureyri, but before you reach Akureyri you reach the town of Dalvík, meaning ‘Valley Bay’. With its mountain background and port side views, Dalvík is a picturesque coastal town with great links for skiing, sea tours and hiking! There is something for everyone in every season, so take your pick! Be sure to hop in one of the local saunas / hot tubs on a cold day to warm you up with quite possibly the best views.
📍 Walks to do in Dalvík – Through the main town highstreet
📍 Sights to see in Dalvík – Fishing harbour
📍 Places to eat in Dalvík – Gisli Eirikur Helgi Kaffihûs Bakkabrædra for fish soup or homemade cakes
📍 Where to stay in Dalvík – Dalvík HI Hostel
5. Seyðisfjörður
The furthest point east that we ventured and the most insane drive into a town we have ever had meant Seyðisfjörður had to go on the villages and towns you need to visit in Iceland list! After leaving Route 1 we followed Route 93 up and over mountains with an altitude of 600 meters, so even in the summer and with sunshine, it is cold with a lot of fairly deep snow. But that’s not the best bit about the town, neither are the countless waterfalls you pass while coming into the town. It’s the artistic, mural-covered, sculpture filled town centre, with a rainbow road and bright blue painted church that makes Seyðisfjörður extra special!
📍 Walks to do in Seyðisfjörður – Anywhere around the town for some art/sculptures
📍 Sights to see in Seyðisfjörður – Rainbow road & the Blue Church
📍 Places to eat in Seyðisfjörður – Pizza bar along the fjord
📍 Where to stay in Seyðisfjörður – Seyðisfjörður Hafaldan HI Hostel
6. Djúpivogur
Djúpivogur is a small town, relatively unknown to tourists, that is situated along one of the southernmost points in the East Fjords of Iceland. Being surrounded by water this town is full to the brim with seabirds darting across the harbour and sunning themselves on the land. It is so famous for its numerous seabirds that the sculptor Sigurður Guðmundsson created a piece (or shall we say pieces), called Eggin í Gledivík to celebrate all 34 of the birds that nest in the area. It’s a wonderful sight to see, even more so as there is a delightful bright orange lighthouse just around the corner too!
📍 Walks to do in Djúpivogur – Any in and around the town
📍 Sights to see in Djúpivogur – Eggin í Gledivík
📍 Places to eat in Djúpivogur – Við Voginn
📍 Where to stay in Djúpivogur – Djúpivogur Hotels – Framtid Camping Lodges and Apartments
7. Vík
One of the most well-known places on our list Vík is well worth a visit if you are just sticking to the south coast. With volcanic black sand beaches, crashing waterfalls and the famous puffin, the area in and around Vík is stunning. Although we’ve visited the town twice in different seasons we still found new things to discover. Even on a grey day, (which it quite often is in Vík!), the colourful town’s rooftops brighten the day and as long as you embrace the howling wind and pouring rain you can’t help but fall for Vík.
📍 Walks to do in Vík – For views over the town walk up to Vík í Mýrdal Church
📍 Sights to see in Vík – Reynisfjara beach and Dyrhólaey
📍 Places to eat in Vík – A small restaurant near the Church with fresh seafood dishes
📍 Where to stay in Vík – Vík HI Hostel
Where to stay in Iceland
All of the locations above have HI Iceland Hostels located nearby and we would highly recommend staying with them. We stayed in them throughout our time in Iceland and we couldn’t have wished for nicer accommodation.
Check out Hostelworld for the locations closest to where you want to base yourself or the map below for more accommodation options.
Towns and Villages in Iceland You Must Visit FAQs
How to get around Iceland
By far the best way, and often the only way, to get around Iceland is by car. If you want to go anywhere off the beaten path, there are extremely limited options if going via public transport, i.e. bus.
Car Hire in Iceland
We highly recommend hiring a car from Rentalcars.com for your trip to Iceland. We have used them to hire vehicles in multiple countries and they always get some of the best deals going.
What is the most beautiful small town in Iceland?
The most beautiful small town in Iceland has to be Seyðisfjörður. With its colourful houses surrounding the fjord, a quaint blue church, waterfalls at every turn and a rainbow road through the centre of the town. Seyðisfjörður is definitely somewhere worth visiting.
Is Húsavík a real town in Iceland?
Now, before anyone asks, following on from the highly popular film based in the location, Húsavík is indeed a real town in Iceland and is in fact the oldest settlement in Iceland. It is also known as the Whale Capital of Iceland so if you want a chance to see some whales then Húsavík is the place to go!
How many villages and towns are there in Iceland?
There are over 100 towns and villages to be explored in Iceland, so be sure to not stick to just Reykjavík or the well known destinations but get out exploring other more remote locations too.
What is the smallest village in Iceland?
The smallest village in Iceland is Mjóifjördur, located in East Iceland, with under 10 people living there year round.
Iceland Tours
When visiting Iceland it can really pay off to hop on board a tour or two to see a whole other side of the country. Plus then you don’t have to do the driving! Check out these tours from Get Your Guide for some of the best:
Conclusion: Towns and Villages in Iceland You Must Visit
There you have it our towns and villages in Iceland you should visit. There are plenty more stunning locations across Iceland to visit, but these are the top ones you should make sure you get to. Be sure to check out our other Iceland posts for even more tips and suggestions.
Planning your own trip to Iceland? Make sure you check out our Travelling Tedaldi Amazon Store Travel Guides for all your guidebooks and maps. (We’ve done the hard work for you and linked all the things we used to plan our trip!)
This post has been produced in collaboration with HI Iceland. Although we were gifted the accommodation (and a few breakfasts!) during our time in Iceland, our opinion of HI Iceland and the individual hostels we stayed at is our own and has not been influenced.
Gemma Tedaldi
Gemma is the owner and author of The Travelling Tedaldi, a travel blog helping travellers to discover the best road trips and travel itineraries throughout the UK and Europe. When she isn’t writing about her favourite travel destinations, she can often be found out exploring local hikes or planning future trips.