Seydisfjordur

Rainbow-painted fjord village 27km east of Egilsstadir — ferry to Denmark, wooden Norwegian houses, and one great cafe.

Seydisfjordur is a village of 700 people at the head of one of Iceland's most dramatic fjords, and it's probably the most photogenic settlement in the country. Norwegian merchants built the coloured timber houses in the 1890s, the blue church sits at the end of a rainbow-painted pathway (installed by the town for pride week and made permanent), and the Norrona ferry from Denmark docks here weekly — the only sea route in and out of Iceland for cars.

The mountain pass road from Egilsstadir over Fjardarheidi (620m) is spectacular and closes in bad winter weather — plan around it. The village itself is small enough to walk in 20 minutes, but there's the excellent Nord Austur sushi bar, a decent brewery (East), and the Skaftfell art centre in a Bauhaus-influenced building. Doubles ISK 19037-ISK 29477, more when the ferry arrives. Skip in deep winter unless you’re prepared for the pass to close. Suits fjord photographers, ferry travellers, and anyone chasing peak Instagram Iceland.

At 9pm in summer the light is still gold on the water and the fjord walls glow orange while the village goes quiet — most shops shut by 6pm, and the only real buzz is at East brewery or Nord Austur if it's a ferry night. Off-season, by contrast, the village can feel almost abandoned after dark, with a handful of lit windows against black mountains and no streetlife beyond the odd car heading up to the pass. It rewards slow travellers, not people trying to tick the fjord and leave within the hour.

First-time visitors sometimes expect a bigger town given how often the rainbow path is photographed — it is not. There is one main street, one supermarket, and no nightlife scene beyond a couple of bars that close early outside ferry season. Anyone wanting live music, late dining options, or a wide restaurant choice should base in Egilsstadir instead and day-trip over the pass; Seydisfjordur is for the fjord, the walk, and one very good meal, not for entertainment.

Where to sleep

Everywhere in Seydisfjordur is walking distance to everything else — the village is 1km end to end. Expect ISK 19037-ISK 29477 summer, less in winter, with rates climbing sharply on Wednesday ferry nights when demand doubles. Hotel Aldan (a restored 1908 hotel spread across three buildings) is the pick — atmospheric, well-run, mid-price, and central on the main street facing the harbour. Cheaper guesthouses cluster on Ranargata and Nordurgata, a two-minute walk from the water; avoid booking anything described as "near Seydisfjordur" that is actually up on the pass road, since there is no evening transport back down. Free parking everywhere. Book far ahead for ferry arrival days (Wednesdays in summer) when the village doubles in size — Hotel Aldan is the safest single booking to make first.

The essentials

Seydisfjordur village and waterfall walk (4 km)

Start at the ferry terminal, walk west along the harbour past the fish factory and Nord Austur, then up the rainbow path to Blaa Kirkja. Continue north along Norourgata past the wooden Norwegian houses. Cut through to Fjardara river and follow it upstream to the base of the Gufufoss waterfall (10 minutes from the village). Return via Ranargata.

Getting there & around

Seydisfjordur is 27km from Egilsstadir on Route 93 — 45 minutes by car over the Fjardarheidi mountain pass (620m). No public buses run the route, so a hire car or pre-booked transfer from Egilsstadir airport (EGS), 30 minutes away, is the only practical option for domestic flight connections. In winter the pass closes 5-15 days a year; check road.is before setting out, and carry warm clothing in case of a wait. Once in the village, everything is within a 15-minute walk, so no local transport is needed at all. The Norrona ferry from Denmark (Smyril Line) arrives Wednesdays in summer, weekly in winter — the crossing is 47 hours, and foot passengers can walk straight off into the village centre.