A white house with a red roof beside the water in Seyðisfjörður, with lupins, conifers and snow-streaked mountains

East Iceland, Iceland

Seyðisfjörður

Houses on the waterfront at Seyðisfjörður beneath the mountains of the fjord in June. (Joe deSousa / Wikimedia Commons · CC0)

A small town at the head of a long, steep-sided fjord in East Iceland, built by Norwegian fishermen from the mid-19th century and known for its colourful timber houses, its art scene and the weekly car ferry from Denmark and the Faroe Islands. Mudslides struck it in December 2020; today it lives on fishing, tourism and the arts.

Neighbourhoods

  • The town centre and harbour
    • First-time visitors
    • Arts and culture
    • Close to the ferry

    The heart of town around the head of the fjord and the river Fjarðará, with the ferry terminal, the church, the Skaftfell art centre and most cafés, galleries and shops. Many of the old Norwegian timber houses stand here, painted in bright colours.

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  • The fjord shores
    • Walks
    • Quiet and residential
    • History

    Roads run out along each side of the fjord from the town, past ruins such as the deserted settlement of Vestdalseyri, once the site of a pioneering whaling station; the south shore leads towards the nature reserve at Skálanes. Beyond the town the fjord is remote and quiet.

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Things to do

Arts and landmarks

  • Skaftfell Center for Visual Artmuseum

    The principal centre for visual art in East Iceland, founded in 1998 after the Swiss artist Dieter Roth helped start an art collective in the town, with exhibitions, a library of artists' books and a bistro.

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  • Seyðisfjarðarkirkjalandmark

    The town church, which stands in the heart of the town on the site it has occupied since 1921 and was built partly from the timbers of an older church brought from Vestdalseyri.

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  • Fjarðarsel power stationlandmark

    Iceland's oldest working power station, founded in 1913 and little changed since — the country's first AC plant — with an exhibition in the station house.

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  • Herðubíóattraction

    The only cinema in the east of Iceland.

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Walks and the fjord

  • Fjarðará waterfallstrail

    A popular path from the town centre follows the east bank of the river Fjarðará up the valley, past a series of some 25 waterfalls.

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  • Vestdalseyriattraction

    A deserted settlement on the fjord, site of the world's first modern industrial whaling station, run by the American whaler Thomas Welcome Roys from 1864 to 1866.

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  • Wreck of El Grilloattraction

    A British oil tanker sunk in the fjord by German aircraft in February 1944, without casualties, now a wreck for divers.

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  • Skálanespark

    A nature and heritage centre and nature reserve about 17 kilometres east of the town on the south side of the fjord, home to a varied wildlife.

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Short trips from the town

  • Egilsstaðirattraction

    East Iceland's main service town, with its airport, 27 kilometres away by road over the Fjarðarheiði pass, on the banks of Lagarfljót.

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  • Borgarfjörður eystriattraction

    A fjord with a village of about 90 people, a large puffin colony, hiking trails and the Álfaborg rock, said by some locals to be the home of the elf queen.

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Eat and drink

Long-standing places and food districts in Seyðisfjörður. Hours, ratings and directions come from your maps app, always current.

Seyðisfjörður classics

  • Skaftfell bistrorestaurant

    The bistro in the Skaftfell art centre, with an art library to browse.

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  • Restaurants in the town centreneighborhood

    A handful of restaurants and cafés in the small town centre, alongside the Skaftfell bistro.

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Experience Seyðisfjörður

History

Settlement in the fjord goes back to the early period of Iceland's settlement, when, by tradition, a man named Bjólfur took the whole fjord; the mountain to the west of the town bears his name. Excavations in 1998–1999 on the fjord uncovered the ruins of a burned stave church, carbon-dated to the 11th century. A church stood at Dvergasteinn on the north shore from about 1200 until the 19th century.

The town itself began in 1848, built by Norwegian fishermen who put up some of the wooden buildings that still stand. Nearby at Vestdalseyri the American whaler Thomas Welcome Roys ran the world's first modern industrial whaling station from 1864 to 1866. The town grew around herring fishing and processing and received its town charter in 1895. In 1906 the first telegraph cable linking Iceland to Europe came ashore here, making the town a hub of international communications for decades, and in 1913 a dam on the river powered the country's first high-voltage AC power station and its first town electricity network.

In the Second World War British and American forces used the fjord as a base, and in February 1944 German aircraft sank the tanker El Grillo there. When the local fish-processing plant closed, the town turned increasingly to tourism and the arts. In December 2020, after about 570 mm of rain in five days, mudflows struck the town, the largest ever to hit an Icelandic settlement; 39 houses were damaged and twelve destroyed, protected historic buildings among them, and every resident was evacuated. Residents of the surviving houses were allowed home in October 2021 after protective works were built, and the Technical Museum of East Iceland was badly damaged.

Culture & Customs

Seyðisfjörður is known above all for its artistic life. The Swiss artist Dieter Roth kept a home and studio here and, with others, founded a visual art collective in 1996; the Skaftfell Center for Visual Art followed in 1998 and is now the main centre for visual art in East Iceland, holding exhibitions year-round, hosting artists in residence and keeping a library of artists' books. LungA School, an independent, artist-run art school organised as an Icelandic folk school, runs programmes in art and land, and from 2000 to 2024 the town hosted the LungA Art Festival. Herðubíó is the only cinema in the east of Iceland.

The town's setting has drawn film-makers: the skateboarding scene in The Secret Life of Walter Mitty was shot here, as were parts of the television series Trapped. The colourful timber houses of Norwegian origin from around 1900 are what make the town unlike others in Iceland.

Living on the edge of what many consider habitable, between steep mountains and the sea, has shaped the people here. The town has a school brass band, and the sports club Huginn fields teams in football, handball and volleyball.

Daily Life

About 650 people lived in Seyðisfjörður in 2024. The town is part of the municipality of Múlaþing, whose largest town is Egilsstaðir. Fishing and fish processing were long the main work and the town remains a significant fishing port, with harbours, shipbuilding facilities and a slipway, but tourism is growing steadily. The town has a swimming pool, a library, a hospital, a post office, a state liquor store and a supermarket.

The fjord's natural harbour, and its nearness to mainland Europe, have made it an important gateway since around 1900. Every week the ferry Norröna brings cars and passengers from Denmark and the Faroe Islands.

The pass shapes daily life. The only road out climbs over Fjarðarheiði, about 600 metres high, and in winter storms can close it. A tunnel to Egilsstaðir was long promised, but in 2025 it was pushed back to after 2040 in favour of tunnels to Mjóifjörður and Neskaupstaður. Precipitation is high, at over 1,650 mm a year, and after the 2020 mudflows protective works were installed before residents could return.

Food

Seyðisfjörður is still a significant fishing port, and fish is the base of the table here as across Iceland, where haddock, plaice, halibut, herring and shrimp are the fish most eaten. Harðfiskur, fish dried by cold air and wind, is traditionally eaten with butter. The town has a handful of restaurants and cafés, and the Skaftfell art centre has its own bistro.

East Iceland has its own game. Reindeer were introduced to Iceland in the late 18th century and live wild on the moorlands of the east, where the herd numbers a few thousand animals; their meat is considered a special delicacy and is usually very expensive. Lamb, whose quality is a point of national pride, is the everyday meat.

National staples complete the table: hangikjöt, smoked lamb; skyr, which has the consistency of strained yogurt but is classed as a fresh sour milk cheese; rúgbrauð, a dense, dark and moist rye bread; and, from the bakery, kleinur, small knotted buns of fried dough, and snúður, a cinnamon roll usually topped with glaze or melted chocolate.

Planning tools

Budget

Seyðisfjörður costs much the same as the rest of Iceland, but beds are few and guesthouses fill early in July and August, especially around ferry days. The town has a supermarket, a campsite, a hostel and a pool; Egilsstaðir, over the pass, is the region's main service town. Most walks cost nothing.

Daily Budget Midrange
USD 290–490 (guesthouse, one restaurant meal a day, a hire car, gallery visits)
Daily Budget Shoestring
USD 120–200 (campsite or hostel, supermarket food, a shared hire car)

Book summer rooms well ahead, and stock up in Egilsstaðir before driving over the pass.

Best Time to Visit

June to August, when the pass is most dependable, the valley paths and the fjord roads are clear of snow and the galleries are busiest. In winter storms can close the Fjarðarheiði pass, though a skiing area on the pass is used.

Suggested Number of Days

A day or two covers the town, its galleries and the valley walk. Three or four days allow time for the fjord shores and the rest of East Iceland. Ferry passengers often arrive or leave on a fixed day, and in winter a closed pass can add a day.

First Visit
1–2 days
With Surroundings
3–4 days

Transportation

The town is small enough to walk. The only road in is route 93 over the Fjarðarheiði pass, about 600 metres high, to Egilsstaðir; routes 951 and 952 run out along the north and south shores of the fjord. Local buses link the town with Egilsstaðir, timed partly to meet flights, but a car is needed for most of East Iceland. A long-planned tunnel under the pass has been postponed until after 2040.

Check road.is for Fjarðarheiði before driving to or from the ferry; in winter storms can close the pass.

Airport & Station Connections

Egilsstaðir Airport, with Icelandair flights to Reykjavík, is about half an hour away by road over the pass. The car ferry Norröna arrives weekly from Hirtshals in Denmark by way of Tórshavn in the Faroe Islands — the only car ferry between Iceland and other countries. Most other visitors drive in from the Ring Road at Egilsstaðir, 27 kilometres away.

Walkability

Very walkable: the ferry terminal, the church, the galleries, the cafés and the start of the valley path are a few minutes apart. Several waterfalls are within the town. Paths on the slopes become icy and snowy in winter.

Safety

Iceland has almost no violent crime and is one of the safest countries in the world. In Seyðisfjörður the dangers are natural. In December 2020 days of heavy rain set off mudflows that destroyed or damaged dozens of houses and forced the evacuation of the whole town. Fog and snow make the Fjarðarheiði pass the main driving hazard.

Heed road closures and evacuation notices without argument, and drive the pass only in good conditions. Check current official travel advice before travelling.

Climate

Seyðisfjörður has a tundra climate bordering on subpolar oceanic, with very high precipitation — over 1,650 mm a year — and unusually a drier summer than winter.

Summer
across Iceland, warm summer days can reach 20–25°C; the town's summers are drier than its winters
Winter
relatively mild for the latitude: Iceland's lowland coasts average around −1 to 1°C in winter

Local Customs

Tipping is not practised in Iceland, and verbal thanks for good service is the better gesture. Most Icelandic communities, this one included, have a heated swimming pool, and staying on marked paths and roads is expected out of respect for the land.

Outside bars and restaurants, alcohol is sold only in the state shops, Vínbúðin — the town has one — and the buying age is 20. The blood alcohol limit for drivers is 0.05 per cent.

Common Payment Methods

The currency is the Icelandic króna (ISK). Cards are accepted almost everywhere, including petrol stations and remote guesthouses, so there is little need to carry much cash. There is an ATM at the bank near the ferry terminal.