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The 7 best small towns in Iceland, ranked

Seven Icelandic towns worth staying in beyond the capital, ordered by character per capita.

Uppfært2026-05-02

The top four

1. Seydisfjordur, East Iceland — 700 people at the end of a 27 km fjord road, rainbow street, blue church, ferry to Denmark, art scene bigger than the town. 2. Stykkisholmur, Snaefellsnes — 1,200 people, harbour full of colourful houses, Volcano Museum, best base for the peninsula. 3. Husavik, north coast — 2,300 people, whale-watching capital of Europe, GeoSea baths on the cliff, still feels like a working town. 4. Isafjordur, Westfjords — 2,700 people, surrounded by 700 m walls of fjord, best restaurants in the region at Tjoruhusid.

These four are places I’ve seriously considered moving to. Seydisfjordur especially — it's the closest Iceland has to a proper artists' town, and the drive in over route 93 in autumn is one of the great road experiences anywhere. Stykkisholmur wins for combining working harbour with actual amenities.

Ranked 5 to 7

5. Vik, south coast — 750 people, gateway to Reynisfjara and Dyrholaey, but the town itself is small and the road-trip crowd dominates. 6. Hofn, southeast — 1,700 people, langoustine capital, Vestrahorn views, gateway to Vatnajokull. 7. Siglufjordur, north — 1,200 people, dead-end fjord town, the Herring Era Museum, the road in through tunnels is dramatic.

What I’d skip as an overnight: Selfoss (functional but soulless), Keflavik (airport town), and Borgarnes (fine for lunch, not a stay). Egilsstadir is the East's practical hub but Seydisfjordur is 25 minutes away and infinitely more atmospheric. If you can only overnight in three of these, do Seydisfjordur, Stykkisholmur, and either Husavik or Isafjordur depending on your route.

Gott að vita

Algengar spurningar

Which small town is best in winter?

Husavik and Siglufjordur — both are ploughed reliably and both have their thermal baths (GeoSea, Sundhollin) that shine in cold weather. Seydisfjordur is beautiful in snow but the pass road closes often.

Can I reach these without a car?

Straeto buses reach Vik, Hofn, Akureyri and Husavik on limited schedules. Seydisfjordur, Stykkisholmur, Isafjordur and Siglufjordur are effectively car-only unless you fly to Egilsstadir or Isafjordur.

Að gera gott er reksturinn: hver bókun í gegnum Stay Iceland fjármagnar eitt staðfest tonn af kolefnisbindingu — sama herbergi, sama verð, engin álagning.

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