Colorful houses in Reykjavik Iceland
Travel Guides

Reykjavik City Guide: Iceland's Vibrant Capital

DMC Iceland Team
October 9, 2025
9 min read

Reykjavik is the world’s northernmost capital city, yet it offers more culture, cuisine, and character than its size might suggest. This vibrant city punches above its weight. Home to two-thirds of Iceland’s population (about 230,000 in the greater area), this compact city has notable restaurants, a lively nightlife scene, interesting museums, and easy access to natural wonders. This is your complete guide to Iceland’s colourful capital.

Neighborhoods

Downtown (Miðborg)

The historic heart of Reykjavik centers on Laugavegur, the main shopping street, and spreads to the old harbor. Here you’ll find:

  • Colorful corrugated-iron houses
  • Most restaurants, bars, and shops
  • Street art and murals
  • Live music venues
  • Tourist services

Hlemmur & East Downtown

The area around the former Hlemmur bus terminal has transformed into a foodie destination with some of Reykjavik’s best restaurants and the modern Hlemmur Mathöll food hall.

Grandi Harbor District

The revitalized old fishing harbor now hosts:

  • Grandi Mathöll food hall
  • Whales of Iceland museum
  • FlyOver Iceland
  • Aurora Reykjavik
  • Trendy cafés and restaurants

Vesturbær

The quiet western neighborhood offers:

  • Beautiful coastal walks
  • Peaceful residential streets
  • Local cafés away from tourists
  • Grótta lighthouse (walk at low tide)

Top Attractions

Hallgrímskirkja

Reykjavik’s iconic church dominates the skyline with its 74-meter tower inspired by basalt columns. Take the elevator to the observation deck for panoramic city views. The statue in front depicts Leif Erikson, gifted by the United States in 1930.

Harpa Concert Hall

This glass building by the harbor hosts concerts, conferences, and events. Even without tickets, the architecture merits a visit. The geometric glass façade, designed by Ólafur Elíasson, changes with the light.

Sun Voyager (Sólfar)

This steel sculpture on the waterfront resembles a Viking ship pointing toward the sunset. It is one of Reykjavik’s more photographed spots, particularly at sunrise or sunset with the mountains across the bay.

Perlan

A rotating glass dome atop hot water tanks now houses:

  • Wonders of Iceland exhibition
  • Planetarium
  • Indoor ice cave
  • Observation deck
  • Restaurant with views

The surrounding Öskjuhlíð hill offers pleasant forest walking trails.

Old Harbor

The working fishing harbor has transformed into a tourist hub:

  • Whale watching tours (Elding, Special Tours)
  • Puffin tours (summer)
  • Sea angling trips
  • Maritime museum
  • Restaurants and bars

Museums

National Museum of Iceland

Comprehensive journey through Icelandic history from settlement to present. The Settlement Era exhibit and medieval artifacts are highlights.

Reykjavik Art Museum

Three locations showcase Icelandic art:

  • Hafnarhús (contemporary art)
  • Kjarvalsstaðir (Kjarval paintings + exhibitions)
  • Ásmundarsafn (Ásmundur Sveinsson sculpture)

The Settlement Exhibition (Landnámssýningin)

Built around archaeological remains of a 10th-century longhouse, this museum brings Viking-age Reykjavik to life through multimedia presentations.

Whales of Iceland

Life-size models of 23 whale species found in Icelandic waters. An excellent complement to whale watching.

Saga Museum

Wax figures recreate scenes from Iceland’s dramatic history, Viking settlements, sagas, and medieval life.

Icelandic Phallological Museum

Yes, it’s a museum dedicated to penises. Specimens from nearly every mammal found in Iceland, including a controversial human specimen.

Food & Dining

Traditional Icelandic

Grillið – Fine dining with Icelandic ingredients and harbor views Dill – Iceland’s first Michelin-starred restaurant Matur og Drykkur – Modern takes on traditional dishes Icelandic Street Food – Traditional lamb soup, fish stew in bread bowls

Seafood

Grillmarkaðurinn – Excellent seafood and steaks Fish Market – Fresh catches in stylish setting Fish Company – Creative seafood fusion Sægreifinn (Sea Baron) – Famous lobster soup at the harbor

Casual & International

Hlemmur Mathöll – Food hall with diverse vendors Snaps – French bistro feel, excellent brunch Bæjarins Beztu, Iceland’s famous hot dog stand (try “one with everything”) Noodle Station – Affordable Thai-style noodles Ostabúðin – Cheese shop and café ROK – Nordic tapas and cocktails

Bakeries & Cafés

Sandholt – Premier bakery since 1920 Reykjavik Roasters – Specialty coffee Kaffi Loki – Traditional Icelandic cakes and rye bread ice cream Café Babalu – Eclectic, cozy downtown spot Emilie and the Cool Kids – Trendy specialty coffee

Budget Options

  • Hot dogs from Bæjarins Beztu (ISK 500)
  • Supermarket meals (Bónus, Krónan)
  • Food hall lunches
  • Fish and chips at Icelandic Fish & Chips

Nightlife

Reykjavik has an active nightlife scene, though it starts late. Locals rarely head out before midnight on weekends.

Bars & Pubs

Kaldi Bar – Craft beer focused Mikkeller & Friends – Danish craft beer outpost Skúli Craft Bar – Local microbrews Kaffibarinn – Iconic bar (look for London Underground sign) Lebowski Bar – Cocktails and bowling alley Pablo Discobar – Latin-inspired drinks and music Slippbarinn – Hotel bar with excellent cocktails

Live Music

Húrra – Best live venue for local/touring bands Gaukurinn – Rock, metal, punk scene Mengi – Experimental and avant-garde Dillon – Whisky bar with occasional live acts Harpa – Major concerts and events

Clubs

The line between bar and club blurs late at night. Most bars transform as the evening progresses. Popular options:

  • Húrra (after live shows)
  • Kaffibarinn
  • American Bar
  • Various pop-up events

Shopping

Souvenirs & Gifts

Icelandic Design Center – Curated local design Kirsuberjatréð – Women-designed crafts and art Farmers Market – High-end Icelandic design Handknitting Association – Authentic lopapeysa sweaters Rammagerðin – Traditional Icelandic items Fríða – Quirky gifts and art

Fashion

Kiosk – Collective of Icelandic designers Farmers Market – Distinctive Icelandic style 66°North – Outdoor clothing (expensive but quality) Cintamani – Technical outdoor gear Geysir – Icelandic fashion and homeware

Books & Music

Eymundsson – Main bookstore chain 12 Tónar – Record store and café Bókakjallarinn – Used books IÐA – Books and design

Day Trips from Reykjavik

Easy Day Trips

  • Golden Circle (Þingvellir, Geysir, Gullfoss) – 6-10 hours
  • Blue Lagoon – 45 min each way
  • Reykjanes Peninsula – Volcanic landscapes, half day
  • Snorkeling/Diving Silfra – Half day

Longer Day Trips

  • South Coast (to Vík) – 10-12 hours
  • Snæfellsnes Peninsula – 10-12 hours
  • Whale watching – 3-4 hours

Practical Information

Getting Around

Walking – Downtown is compact and walkable Buses – Strætó system covers the city (pay with app or card) Scooters – E-scooter rentals available Taxis – Expensive but available Rental cars – Best for day trips

Where to Stay

AreaBest For
DowntownWalking to everything, nightlife
GrandiQuieter, harbor access
HlemmurFoodie scene
Near airportEarly departures

Tipping

Not expected in Iceland, service is included. Exceptional service may merit rounding up.

Best Time

  • Summer – Midnight sun, outdoor activities
  • Winter – Northern Lights, Christmas atmosphere
  • Shoulder – Fewer crowds, lower prices

Planning to visit Reykjavik? Contact us for guidance on making the most of your time in Iceland’s capital.