Reykjavik Iceland

Reykjavik, Iceland

Iceland’s most crowded tourist attraction is a former industrial byproduct. The Blue Lagoon’s distinctive milky blue colour is silica and algae suspended in runoff water from the Svartsengi geothermal power plant on the Reykjanes Peninsula. It became a spa, then a destination, then an international icon. You now book weeks ahead for timed entry slots starting at around USD 72. The water is beautiful and the experience is genuinely pleasant – but the Blue Lagoon has also periodically closed due to volcanic eruptions on the Reykjanes Peninsula, which has been geologically active since late 2023, and the lagoon sits within the evacuation zone. Check current status before planning your trip around it.

Reykjavik is the world’s northernmost capital and a city of around 140,000 people, which is about a third of Iceland’s total population. Compact, walkable, and punching significantly above its size in food, design, and nightlife. The city is both a destination and the obvious base for Iceland’s famous landscapes.

The City

Hallgrimskirkja, the 74.5-metre expressionist Lutheran church on the hill above the city centre, was designed to evoke Iceland’s columnar basalt formations from volcanic cooling. The lift to the tower top runs a few euros and gives the best elevated view of the city’s coloured rooftops running down to the harbour. The building was designed in 1937 but not completed until 1986 – a 49-year construction that shaped the city’s skyline through multiple generations.

Harpa Concert Hall on the waterfront has a faceted glass facade designed in collaboration with Olafur Eliasson. Walk through the public lobby without paying for anything; the effect of light through the geometric glass panels changes hour by hour.

The Settlement Exhibition (Landnamssyningin) near Austurstraeti is built directly over the excavated remains of a 10th-century Viking longhouse found during city construction in 2001. The way the museum wraps the archaeology without disturbing it is well done.

Laugavegur is the main shopping street – cafes, wool boutiques, bookshops, and the kind of small independent design shops that characterise the better parts of Reykjavik’s commercial life.

Where to Eat

The hot dog stand at Baejarins Beztu Pylsur near the harbour has served the same lamb-and-pork frankfurter since 1937. Order “ein med ollu” (one with everything): crispy fried onion, raw onion, ketchup, sweet mustard, and remoulade. Bill Clinton ate one in 2004. It is a perfect hot dog.

Dill Restaurant on Hverfisgata holds Iceland’s first Michelin star, serving a tasting menu built on Icelandic ingredients and new Nordic principles. Matur og Drykkur near the Old Harbour does a more accessible version of the same philosophy with reinterpreted traditional dishes. Braud and Co bakery on Frakkastigur does cinnamon rolls that justify a queue.

The Lagoons

The Blue Lagoon is 45 minutes from Reykjavik, near Keflavik Airport, and worth doing once if it’s open. Book in advance; walk-ins are not accepted. Check that the Reykjanes Peninsula has no active eruption before you go.

Sky Lagoon, 15 minutes from Reykjavik on the coast, is the better practical choice for anyone based in the city. A dramatic oceanfront infinity edge, a seven-step spa ritual included in the ticket price, and lower cost than the Blue Lagoon. The city’s neighbourhood geothermal swimming pools – Laugardalslaug is the biggest – are what Icelanders actually use daily. Entry costs around 1,000 ISK. If you want to swim somewhere warm while Reykjavikians go about their morning, use one of these.

Day Trips

The Golden Circle covers Thingvellir National Park (where the North American and Eurasian tectonic plates visibly pull apart, and where Iceland’s parliament first met in 930 CE), the Strokkur geyser (erupts every 6 to 10 minutes), and Gullfoss waterfall. Self-drive or small-group tour. The South Coast adds Seljalandsfoss (walkable behind the waterfall curtain), Skogafoss, and the black-sand beach at Reynisfjara near Vik. The sneaker waves at Reynisfjara are not exaggerated and have killed people. Stay back from the waterline even when it looks calm.

Northern lights are visible roughly September through March on clear dark nights. Between late May and July, the sun barely sets; pack an eye mask.

Practical Notes

Iceland is effectively cashless. Carry no currency; cards work everywhere. A casual dinner with drinks runs ISK 8,000 to 10,000 per person. Pack a waterproof and windproof shell at every time of year. Flybus and Airport Direct coaches cover the Keflavik airport to Reykjavik route for a fraction of taxi prices.