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
Eskifjörður
Eskifjörður and its surrounds are a fabulous microcosm of the east, with attractions that neatly sum up the region’s appeal. In town, it’s easy to find evidence of the fishing and trading history of the area. Eskifjörður became an official trading post in 1789 and has been a commercial center ever since. A visit to the Maritime Museum creates context, then a visit to Randulfssjóhús adds personal insight into the era. This is an old seafarers lodge where you can see fishermen quarters unchanged since 1890; today the building cleverly blends maritime exhibitions with local seafood flavors in its restaurant. If the weather is good, here you can rent a boat and fishing rods and take to the fjord waters for your own angling experience.
Eskifjörður.
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.
Reyðarfjörður
At over 30km long, Reyðarfjörður is the longest and widest of Iceland's Eastfjords. Norwegians once operated whaling stations along the fjord, and fishing was naturally a part of the area’s history. These days the Alcoa aluminum smelter is the main employer, making this the most industrial pocket of the east. But industry doesn’t mean a lack of beauty – in fact, you may recognize some of Reyðarfjörður’s dramatic natural features if you’ve seen the British TV series Fortitude, which was largely filmed here.
Búðarárfoss. Reyðarfjörður.
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.
Norðfjörður
Neskaupstaður is about as far east as you can go in Iceland, and soaring mountains provide a scenic backdrop to the town (which is sometimes called Norðfjörður, after the fjord it sits on). The fjord and those surrounding mountains provide plentiful recreational opportunities, from hiking to horse riding trails. Just outside, on the waterfront, is where Neskaupstaður shines – take a boat trip to see if you can spot whales, and revel in the landscapes that include the rosy glow of Rauðubjörg (the Red Cliffs) across the fjord. Back on land, follow the road as far east as you can to reach a nature reserve full of walking trails and birdlife under the sheer cliff Nípa, plus a legend-filled cave, Páskahellir (Easter Cave), down by the shoreline.
Rauðubjörg. Neskaupsstaður (Norðfjörður).