Beautiful Small Towns in Iceland to Visit in 2025

Looking for small towns in Iceland to visit? Velkominn – You’re in the right place.

The entire population of Iceland is only 382,000, and the largest city is Reykjavik, where 60% of the population lives.

The rest of Iceland’s population either live in rural areas, or in small towns scattered throughout the country. These small towns usually have anywhere from a few hundred to just over 2,000 people.

But some of them even have less than 200 people living in them.

Most tourists to Iceland stick to the south Ring Road 1, but as you can see – this isn’t where most of the small towns are. Most small towns in Iceland are found along the east, west and northern coast.

While I enjoyed Reykjavik, I found the small towns to be some of the best places in Iceland to visit. They offer a lot of unique things to do that can really open your eyes to the charm and culture of Iceland.

I’m going to highlight the best small towns in Iceland that are good for tourists; because of their scenic beauty or things to do in the area.

15 Best Small Towns in Iceland to Visit

1. Vik i Myrdal

Population: 600 people
Location: South Iceland

Vik i Mydral (usually just called Vik) is one of the most visited small towns in Iceland because of its location on the Ring Road in south Iceland. Most people stop in Vik on their way from Reykjavik to Glacier Lagoon.

Vik is located right on Black Sand Beach, and just a short walk from the famous Basalt Columns. For a town this small, there’s actually a lot to do in the Vik area.

Things to Do in and around Vik:

• Visit the Katla Ice Caves
• Hike the Sólheimajökull glacier
• See a lava show in town
• Go zip-lining at Zipline Iceland
• Visit waterfalls – Seljandsfoss and Skogafoss, which are 20 minutes away and two of the prettiest waterfalls in Iceland
• Marvel at the famous Reynisafara Black Sand Beach, and the Basalt Columns

For more ideas and details of the above, read my post about Amazing Things to Do in Vik, Iceland.

2. Hvammstangi

Population: around 540 people
Location: Northwest Iceland

Hvammstangi is a small fishing village in northwest Iceland which is growing in popularity with tourists. It’s located right off the Ring Road, right on the Vatnsnes peninsula which is a scenic place to drive through.

Things to Do in Hvammstangi:

• Visit the Icelandic Seal Centre, where you can learn about seals and walruses found in Iceland. There’s also a gift shop
• Stop at the KIDKA Wool Factory Shop, which is a great place to get authentic Icelandic wool-knit sweaters and other clothing. Makes a great gift or souvenir from Iceland
• If you’re visiting between June and August, there’s a decent outdoor swimming pool called Sundlaugin á Hvammstanga, with waterslides.

3. Seyðisfjörður

Population: 700 people
Location: East Iceland

Seyðisfjörður is known as the cutest small town in Iceland. It’s located in east iceland, which is further than most tourists usually travel. But if you’re in east Iceland, its worth it to stop in Seyðisfjörður for at least an hour or so.

You can admire and get photos of the blue church with the rainbow road leading up to it. The locals painted this in summer 2016 as a community project.

Things to Do in Seyðisfjörður

• Visit the art gallery at the Skaftfell Art Center. You can also do a hike to see the sculpture, and book a table in their bistro.
• Check out the Technical Museum of East Iceland, which also acts as a heritage centre for the town of Seyðisfjörður
• Grab a bite to eat in one of the many great restaurants, (which are usually only open in high season.) Besides the Skaftfell connected with the art centre, there is also: The Nordic Restaurant, Fancy Sheep, and the Kaffi Lára El Grillo Bar

4. Egilsstaðir

Population: 2,500 people
Location: East Iceland

Egilsstaðir is a short drive from Seyðisfjörður mentioned above, but is a much larger town comparatively – over 2,000 people.

Here are thing to do while you’re in Egilsstaðir:

• Visit the East Iceland Heritage Museum
• See the Fardagafoss waterfall which is 66 feet tall, 5 minute drive from town
• Soak in the geothermal Vök baths (the only floating infinity pool in Iceland) only 7 minutes away from Egilsstaðir
• Shop for souvenirs in Hús Handanna, a boutique gift shop in town
• Enjoy a drink at the Askur Taproom bar in town

5. Husavik

Population: 2,400 people
Location: North Iceland

Husavik draws a lot of tourists because its known as the whale watching capital of Iceland. There are lots of whale watching tours you can take if you visit in the summer.

Husavik is accessible off the Ring Road if you’re driving the full circle of Iceland, but you can also get a flight there from Reykjavik.

Other things to do in Husavik

• Go on a whale tour (there are many to choose from) *summer only
• Learn about whales at the Húsavík Whale Museum
• Relax in the Geothermal Sea Baths
• Try local brewed beers at Húsavík öl

6. Höfn

Population: 2,000 people
Location: Southeast Iceland

Höfn in Icelandic means “harbour.” It’s a very remote town in Iceland, with the nearest other town being over an hour away.

Höfn is just over an hour west of Glacier Lagoon and is a popular stop along the Ring Road. There are many guest houses and places to stay in town.

Another interesting fact about Höfn is that some movies have been filmed here, James Bond and The Secret Life of Walter Mitty.

Here are some neat things to do in Höfn:

• Walk along the harbour, and enjoy the scenic views
• Visit the Viking Village, which was made as a set for a movie that due to insufficient funds, wasn’t released.
• Walk the Nature Trail (Náttúrustígur) in the Ósland conservation area
• Shop for local handicrafts at Handradinn in town

7. Selfoss

Population: 9,200 people
Location: South Iceland

Selfoss is a small town in southwest Iceland, just under an hour from Reykjavik. It’s located right on the Öfusá river, and very close to a number of scenic attractions just outside town.

Right in town, there are several places to stay, and restaurants. One of my favourite stops in Selfoss was this bookshop pictured above.

Here are the things to do in Selfoss:

• Visit the Bókakaffið, bookstore and café (pictured above)
• Tour the Skyrland museum, which teaches you all about skyr – Iceland’s yogurt
• If you’re a chess fan, visit the Bobby Fisher museum that teaches you all about the life of this famous world champion chess player
• Kerið craer, just a 15 minute drive from downtown Selfoss

8. Siglufjörður

Population: 1,300 people
Location: North Iceland

Siglufjörður is the northernmost town of mainland Iceland. Like most Icelandic towns, its right on the harbour and it has a dramatic backdrop of fjords surrounding it.

Siglufjörður has lots of museums and outdoor adventure activities. I’d highly recommend a stop here regardless of the season, because there are activities for winter and summer.

Here are the best things to do in Siglufjörður:

• Book a tour with Soti Travel – they offer a lot of unique and fun things to do in both summer and winter
• Do some watersports with Siglo Sea in town – they offer kayaking, swimming and other tours
• Visit museums, such as the Þjóðlagasetur Folk Music Centre, The Herring Era Museum (the largest maritime museum in Iceland), or Saga Fotografica (the photo history museum)

9. Borgarnes

Population: 2,000 people
Location: West Iceland

Borgarnes is a small town just over an hour from Reykjavik. We stopped there on our way to explore western Iceland.

Borgarnes is not usually on most lists of the most beautiful towns in Iceland, but I really enjoyed it. I wouldn’t recommend staying long in Borgarnes, but it is certainly worth a stop if you’re exploring west Iceland.

Here are some things to do in Borgarnes:

• Swim in the outdoor pool, which has waterslides, hot tubs and a children’s pool. (only open during the warmer months)
• Shop in the local market, Ljómalind, for locally produced artisan foods and handicrafts
• Stop in one of the cutest coffee shops in the world, Kaffi Kyrrð

10. Ísafjörður

Population: 2,700 people
Location: Northwest Iceland

Ísafjörður is the most northern western town in Iceland, located way up in the western tip.

Ísafjörður is far, and nowhere near the Ring Road. (From the Ring Road, you will need to drive an additional 4.5 hours to get to Ísafjörður.) But let me tell you, the views are worth it.

Similar to Siglufjörður mentioned above, the town is surrounded by fjords. The views are spectacular. There are a lot of natural beauty and adventure activities in the area. You can go whale watching, kayaking, hiking and exploring the fjords.

Things to do in Ísafjörður (that make it worth the trek):

• Do some outdoor adventures with Borea, which is a licensed outdoor adventure company based in Ísafjörður.
• Do some walking tours and nature trails with a local guide at Isafjordur Guide. This is a small family-run business that
• Learn about local culture at the Hvers Museum (summer only)

11. Dalvik

Population: 1,400 people
Location: North Iceland

Dalvik is in north Iceland, just an hour from Akerur , which is the largest city in north Iceland. It’s very popular for whale watching, outdoor adventure and learning about local culture too.

Here are some great things to do in Dalvik:

• Go whale watching with Arctic Sea Tours
• Go hiking on the many trails in the area, and visit the Dalvík beach
• Go swimming in the Dalvik Swimming pool, which also has hot tubs (popular year-round!)
• Check out the art gallery at the Dalvík Library, or visit the Dalvík Museum

12. Akranes

Population: 7,400
Location: West Iceland

Of all the small towns in Iceland mentioned in this article, Akranes is the closest to Reykjavik, less than 1 hour away.

Akranes is growing in size, in both full time residents and tourists who come here to experience an Icelandic fishing town close to Reykjavik.

We enjoyed a nice walk along the coastline, taking photos of all the unique sculptures, and the lighthouse.

Here are some things to do during a stop in Akranes:

• Get views of the Old Akranes Lighthouse, built in 1918
• Visit the sandy Langisandur beach
• Go hiking at Akrafjall, just outside of town. (Rocky, dramatic landscapes.)
• Visit the Hoppland water park. There’s a tall diving board where people jump into the harbour. Suitable for older children and adults

13. Stykkisholmdur

Population: 1,400 people
Location: West Iceland

Stykkisholmdur is one of the cutest towns in Iceland and one of the most popular places to stay for people visiting the Snaefullness peninsula. There are many accommodations and restaurants.

If you’re visiting the Snaefullness peninsula, you’ll already have a full itinerary with many incredible scenic sights to fill your day. However, we spending some time in Stykkisholmdur while we were there.

Here are some things to do in the town of Stykkisholmdur (besides sleep and eat):

• Relax in Stykkishólmur Swimming Pool, which is chlorine-free (only heated with geothermal energy)
• If you’re a book lover, visit the Bókaverzlun Breiðafjarðar. Great place to browse books and get a cup of coffee
• Visit the Norweigen Museum, which got its name from where the wood was imported to build it. They have some interesting exhibits and shows.

14. Arnastapi

Population: 60 people
Location: West Iceland

Like the town of Stykkisholmdur, Arnastapi is another cute (and tiny) village on the Saefullness peninsula – but it is much smaller than Stykkisholmdur, with less than 100 people in total.

The two towns are just over an hour from each other, so they both have unique things to see and do. Personally, I would only stop in Arnastapi, because although it was beautiful, you could see it all in a short time.

Here are the things to do around the village of Arnastapi

• Walk along the Arnastapi Harbour
• See several scenic sights along the Arnasapi coastline: the lighthouse, the Gatklettur (pictured above), and the stone bridge
• Get a bite to eat at one of the local restaurants – Stappin (fast food) or Samkomuhúsið Arnarstapa (more traditional Icelandic)

15. Breidalsvik

Population: only around 130 people
Location: East Iceland

Breidalsvik is a tiny remote village nestles in the east fjords. The views from the village are breathtaking, with the surrounding dramatic mountain range.

The village itself is very small, but there are a few gems in town, as well as just outside of it. Bredalsvik in general is a good gateway for exploring the Eastfjords.

Things to do in or near Breidalsvik

• Visit the Beljandi Brewery
• If you like vehicles, check out the Factory Car Museum
• Walk along Meleyri Beach and get spectacular views

Pro Tip: The drive between Breidalsvik and Egilsstaðir (another town mentioned above) takes about 1 hour and is incredibly scenic. Take Route 1 for the best views.

Things to Keep in Mind about Small Towns in Iceland

By now, hopefully your itinerary is full of ideas of how to spend time in some of the Icelandic small towns.

There are a few things to keep in mind before adding any of these towns to your itinerary:

• Icelandic small towns are great for all ages. If you’re in Iceland with kids, you’ll find that almost every small town has a playground and a swimming pool (some with waterslides.) The pools appeal to adults too, as many have hot tubs.
  
• Not all of the Icelandic small towns are set up for tourism. All of the above towns receive tourists, but some draw them much more than others.

• Many services are and activities are seasonal. This goes for anywhere in Iceland, but especially the small remote towns. They simply don’t see enough people in the winter to make it worth it to stay open. Before trekking out there in the winter, ensure that the things that draw you there will be open
  
• You likely don’t need a lot of time in each town. Most of these small towns are very tiny, even smaller than what many of us are used to. Some of these towns are worth staying overnight, but others are more designed to be visited in a couple hours. Take a look at what there is to do, and what is nearby to decide if its worth an overnight stay

Small Towns in Iceland FAQ

Here are the most commonly asked questions about small villages in Iceland

What is the smallest village in Iceland?

Mjóifjörður, a small town in east Iceland, is known for being the smallest town in Iceland. It has a grand total population of only 7 people!

What is the most visited town in Iceland?

Aside from Reykjavik, which is more of a city than a town, the most visited town in Iceland is probably Vik i Myrdal because of its proximity to the Black Sand Beach, and only being 2 hours away from Reykjavik. Many tours take you through Vik to see sights in the area, and it’s a very common place to stop through on a road trip as well.

Final Thoughts on Small Towns in Iceland

Exploring small villages and their surroundings was one of my favourite things to do in Iceland. Many of these villages are small fishing communities, with beautiful beaches with sea side cliffs, and views of the ocean.

Visiting small villages allows you to explore a lot of authentic Iceland activities, like reading a book in a quiet cafe, ordering traditional homemade food