A Guide to the Charming Villages of Austurland
Seyðisfjörður
Seyðisfjörður might be a fairly busy port town – it’s where the ferry from Denmark and the Faroe Islands arrives – but it hasn’t lost its small-town charm. Tucked at the mouth of a narrow fjord and surrounded by steep mountains, the village feels like it’s in its own little world.
If you’re coming by car, the drive down into Seyðisfjörður is something special. The view as the road winds down the mountainside is easily one of the most stunning in East Iceland.
Once you’re in town, you’ll notice all the colourful old houses and buildings, many of them full of history. The most well-known is probably the blue church at the end of the rainbow-painted street – a favourite photo spot. Keep an eye out for the old hospital and the harbour building too – both have been turned into places to stay.
Seyðisfjörður. Photo: Þráinn Kolbeinsson.
Bakkagerði
This cute little village is located in Borgarfjörður Eystri. Right on the water, it’s a quiet place, and there’s perhaps nothing better to do than relax in one of the hot tubs at Blábjörg Resort and take in the view. During the annual Bræðslan music festival, the noise level ramps up as everyone lets their hair down and enjoys themselves.
The town is home to a striking rock formation called Álfaborg, which you can hike up for sweeping views of the area. The name means “Elf Castle,” and some Icelanders believe it’s the home of the Queen of the Elves. With its fortress-like shape, it’s not hard to see why.
Nearby, you’ll also find Kirkjusteinn or Church Rock, said to be the elves’ place of worship.
These are just a couple of the many folk tales connected to the area. If you’re curious to hear more, don’t be shy about striking up a conversation with a local.
Bakkagerði. Photo: Gunnar Freyr Gunarsson.
Breiðdalsvík
Breiðdalsvík is a small coastal village at the mouth of the wide Breiðdalur valley. Surrounded by mountains and sea, it’s a quiet place with deep roots in fishing and trade. The town grew in the early 20th century, when a harbour was built, and fishing became the main industry. Today, tourism and small businesses play a growing role in village life.
There’s a black-sand beach just a short walk from the centre that's great for a peaceful stroll. Hiking trails in the area offer coastal views, waterfalls and a chance to explore the open landscape. You can also book a horse riding tour if you’re up for a different perspective. For such a small place, Breiðdalsvík has a few surprises – including a heritage centre in the old co-op building and even a local microbrewery.
Breiðdalsvík. Photo: Travel East Iceland
Fáskrúðsfjörður
This small but memorable village has a unique connection to France that’s hard to miss. Street names are in French, and you’ll even spot French-inspired dishes on local menus. The roots of this link go back to the 19th century, when French fishermen came here to work during the rich fishing seasons off Iceland’s coast.
Many of them stayed, and signs of their presence are still visible today. Just outside the village is a cemetery where 46 French and Belgian sailors are buried. Each July, the community hosts a cultural festival to honour this shared history. While you're here, be sure to visit the French Museum – and if you’re into ghost stories, you might be curious about the old hospital, which some say is haunted.
The French Cemetery, Fáskrúðsfjörður. Photo: Jessica Auer.
Djúpivogur
This delightful port is also worth a stop if you’re on the trail of Austurland’s most charming villages. Located at the mouth of the Berufjörður fjord, it’s well situated for anyone keen to enjoy the great outdoors. But the place has a strong artistic and cultural side to it as well, such as at the settlement’s oldest building, Langabúð which dates from 1790 and currently houses the cultural centre and work by sculptor Ríkharður Jónsson.
You might also want to admire an art installation called Eggin í Gleðivík (the Eggs of Merry Bay) or the Rolling Snowball art exhibition which is staged here each summer. Creativity is celebrated here; where else would you find an old fish oil tank that’s been repurposed as a space where art and music can take centre stage?
Djúpivogur. Photo: Páll Guðmundsson.