I traveled to most of these towns via the Star Legend – a small ship from Windstar Cruises . It was a great way to get all the way around the island in ease…and dare I say a little luxury too. The ship mainly moved to new ports at night which meant that I was able to really optimize my time in Iceland to visiting small towns and experiencing the wildlife and landscape instead of driving all the time.
After cruising around the entire island experiencing the hard-to-get-to communities, I rented a car for a couple of days to explore Southern Iceland in more detail. The ship itinerary didn’t stop in Southern Iceland – so it was my way to be able to experience all of Iceland’s small towns and best cities in 10 days total. Here are my favorite Iceland cities and towns I visited with some ideas of what you can do and see there.
What is the Biggest City in Iceland?
Reykjavik is the country’s capital and its largest town. Most visitors who travel to Iceland stop in Reykjavik. In fact – some people rarely leave the capital region if they are on a quick Iceland stopover . Even though it’s the largest city in Iceland, it still only has a population of 123,000, yet 60% of the Iceland populations lives in Reykjavik.
It’s a super capital city full of museums, high end restaurants, and shopping. I’ve spent time there in the past and decided to focus my time in the lesser known areas and towns. I much prefer to get out and explore the far corners of a country, away from where everyone else goes. And that’s exactly what I did.
Things You’ll find in Every Iceland Town and City
After spending a week traveling through the small towns in Iceland, there were a few things that stuck out to me; things that nearly every town had. After seeing these things multiple times, I concluded that they must be a part of the Icelandic culture.
Churches
Everywhere you look, you’ll find a church steeple point up out of the Iceland landscape. They will be found in big cities, fishing villages, small towns, and the most remote rural settings. Some are modern, like the ones in Reykjavik and Akureyri, some are quaint little things, and some are blue! They even have a stave church in Heimaey! The dominant religion is Lutheranism.
Rainbow Streets and Paths
Iceland is overflowing with rainbows…but not in the sky – on the ground. Nearly every small Iceland town you visit will have a rainbow road or path. It started in the town of Seyðisfjörður in 2014 to show their immense support for pride, diversity, and acceptance. The trend grew to the far corners of Iceland. So not only are the towns filled with colorful buildings, but you’ll also find picturesque rainbows – and plenty of street art.
6A rainbow street in Isafjordor
Swimming Pools
Don’t forget to pack your swimming suite when traveling to Iceland! Every town, big or small, seem to have a swimming pool. And the locals actually go to them regularly – unlike the aforementioned churches! Pools are gathering places for Icelanders and are open every day. They are normally heated by natural hot springs – making it pleasant to visit at any time of year. So the Blue Lagoon is really considered a swimming pool in Iceland culture. There are a lot of local ‘rules’ to know about the swimming pools – so be sure to read up on the Iceland swimming pool etiquette before you jump in!
Hot Dogs
Rock up in any small village and you’ll likely find an Icelandic hot dog stand! I know that seems a bit weird – but hot dogs are a craze there – the ultimate Iceland fast food. And after having a number of them – let me tell you…they are delicious! They are made with lamb meat, all come with a butter toasted bun, a special sweet mustard, fried onions, and ketchup.
A Nearby Waterfall
You don’t have to go far to get to a waterfall in Iceland towns. It is said that there are over 10,000 waterfalls in Iceland. Iceland weather is full of rain, snow, and glaciers – and all of that water has to go somewhere. Nearly every port stop we made had a nearby stunning waterfall to visit.
Skógafoss Waterfall
Iceland Waterfall Photo Tips
If you want to get the cool, smooth, long exposure pictures (like the one above), then here’s a few Iceland Waterfall Photo Tips.
Using a DSLR or Mirrorless camera, bring a tripod and ND filter
If using a iphone, you can still get the slow shutterspeed photos..just do this! Open the camera app – and tap the Live Photo button at the top. That nested circle thing in the top right. If it’s on, the app will briefly display LIVE. Take the picture. Find the photo in the Photos app (or tap the icon in the lower left of Camera, if you just snapped it now.) You’ll see this “LIVE” indicator in the top left, if you’re looking at a LIVE photo. Tap the word LIVE which is actually a popup button, which lets you choose from several different effects that can be applied to a live photo. Tap “Long Exposure” – this will blur the water. It averages all the frames together, and gives it the blurred effect. Just remember, if you are including person in the photo, just make sure they still completely still for a few seconds when you take the live photo.
Protect your gear from the water with a LensCoat RainCoat . You can still get to all of the controls, but you’ll protect your gear at the same time.
Iceland Towns to Visit
Heimaey Island – Vestmannaeyjabær
Heimaey is a hard to reach because it’s an island off of the mainland, however it’s well worth the sea adventure! It’s the only inhabited island of the Westman Island chain and is only 5 square miles. It has a fascinating recent volcanic history that has literally shaped the island and culture. The eruption in 1973 had the entire island evacuated in the middle of the night. The eruption continued for months. By the time residents were able to come back, most homes were buried in the ash and the island expanded by 1 sq mile.
Heimaey and the small town of Vestmannaeyjabær was a stop on our cruise, however you can also take a ferry over from southern Iceland. Either way you go, the journey into the harbor around the sea cliggs is epic!
Things to do on Heimaey Island
See Puffins
Heimaey is where you’ll find the largest concentration of Puffins in Iceland. Sometimes you’ll find them ‘wandering’ through town – but most often you can drive or take a bus tour to the cliffs and view them.
Hike Up the Volcano
I took the time to hike up the Eldfell volcanic cone. It’s a quick hike but steep (720 ft up). It provides the best view of town (if it’s not covered in fog). At the top you’ll also be able to feel the heat still emitting from the mountain. There’s a hole where you can place your hand inside and feel the warmth like an oven. Of course there are also many other hikes you can do on the island if you stay longer and hire a guide.
Volcano Museum
To learn more about the 1973 eruption, see pictures, and learn how the town was saved, be sure to check out the Eldheimar Museum in town – it’s fabulous! Open daily from 11:00 AM to 5:00 PM
Seydisfjordur
This charming town in east Iceland is rarely seen…and on my trip I didn’t get to see it either! We had planned to stop there, however due to weather, we were unable to get into the port. These things happens when you are cruising to remote places and often the Captain has to make decisions based on weather. And since I really only write about places I’ve been to – I’ll send you off to the tourism site to learn more about this little town in Eastern Iceland .
Akureyri
This is the largest city outside of Reykjavik and is situated at the end of a long fjord(Eyjafjörður) on the North coast. Akureyri is known as Iceland’s “Capital of the North.” Don’t let its size fool you; this charming town packs quite a punch! Explore its picturesque streets lined with colorful houses as you try not to trip over adorable Arctic foxes (okay, maybe just in my imagination). There may not be Arctic foxes on the streets, but there are heart stoplights…and that’s pretty darn cool! Every red stoplight in town is heart-shaped…it makes you happy that you have to stop I guess.
Things to do Nearby
Forest Lagoon
Everyone knows of the Blue Lagoon, but on the north side of Iceland you’ll find the Forest Lagoon . This new hot spring spa is nestled in a rare Icelandic forest which gives it a pretty unique setting. I loved going there since it wasn’t crowded and felt more local than the touristy Blue Lagoon. They have a couple of bars, a hot sauna, and a cold dip pool too.
Whale Watching
The Eyjafjörður fjord is home to many whales species and is considered the whale capital of Iceland. There are tons of options, however I went on a RIB boat. These boats are fast and can maneuver quickly so you’ll be able to cover more ground, change directions, and get to the whales quicker than most of the other boats. We saw a number of humpbacks feeding during our morning zipping around out on the fjord whale watching!
DCIM100GOPROGOPR2764.JPG
Goðafoss Waterfall
It is said that 1000 years ago, when Christianity became the official religion in Iceland, the statues of the old Norse Gods were tossed into this waterfall. This is why it’s considered the waterfall of the Gods. It sort of looks like a mini Niagra falls as it spreads out wide across the landscape nearly 90 feet. There are pathways where you can get close to the water and viewing points on both sides of the falls.
Vadlaheidi Tunnel
I hired a local driver through Get Your Guide to take us to the Gadafoss Waterfall – but we ended up getting much more than a ride to the waterfall. Jonas was a wealth of information, gave us a town tour, provided the history and we even did a surprise stop inside the Vadlaheidi tunnel to learn more about the making of the tunnel. I could hardly believe it when he pulled over in the tunnel and he took us into a little room that had pictures of the making of the tunnel and how they overcame the water springs that were unearthed in the construction. It was quite an engineering feat!
Isafjordur
Located in the Westfjords the small, colorful town of Isafjordur is stunning surrounded by mountains and sea. There are a number of museums here such as the Heritage Museum, but definitely check out the Museum of Everyday Life to learn more about how people live in the area. You can also take nearby ATV tours, and go hiking.
Isafjordur
Things To Do Nearby
Dynjandi Waterfall
Dynjandi Waterfall sits in the remote Westfjords of Iceland. It’s the biggest and the most impressive cascade in the region. Translating to “the Thunderer” in English, Dynjandi cascades 329 ft over terraces of basalt boulders. It’s made up of a series of 7 different waterfalls that spill out into the Fjord below.
There’s a great little path to the top that takes about 15 minutes to hike. At the top you can take in some of the most awesome fjord views! The roar was real – like thunder!
Dynjandi Waterfall
Dynjandi Waterfall
Jón Sigurðsson Museum
Hrafnseyri, is an old settlement that has links to Iceland’s independence. In addition to learning more about Iceland’s journey to independance, its also a perfect place to explore the traditional turfhouses and old church found in the countryside. In addition, there is a small coffee shop and a museum dedicated to Iceland’s independence hero Jón Sigurðsson who was born in Hrafnseyri.
Jón Sigurðsson Museum
Grundarfjörður
Burndarfjordor is probably the best known town on the Snæfellsnes Peninsula part of the. You’ll also see it in the movie The Secret Life of Walter Mitty in addition to the small fishing town of Stykkisholmur.
Things To Do Nearby
Puffin Watching
The fishing village of Stykkisholmur is a great location to see those adorable Puffins that Iceland is known for. We went on a ‘Viking Sushi tour’ for a half day where we could sail out to the surrounding islands and see the bird cliffs as well as do some fishing and eat the freshest and tastiest sea scallops I’ve ever had.
Penguins are my favorite bird …but Puffins are a close second for me. They are basically penguins that can fly! They always look like little footballs with wings to me. They flutter their wings wildly to get their oblong bodies airborne, which leaves you cheering for them fearful that they may drop out of the air!
Puffins arrive in Iceland in May and stick around until late August. You can see them in many places around Iceland’s cliffs, but Stykkisholmur was where we saw the most. Plus, the captain of the boat was able to get us so close to the cliffs for an incredible peek into their smelly world.
The Most Photographed Spot in Iceland
Grundarfjörður Kirkjufell Mountain and Kirkjufellsfoss Waterfall are the emblems of the town, towering over the sea dramatically with steep peaks and a three-pronged waterfall beside it. Sadly while we were the top was covered with moody clouds.
