7 Hidden Gems to Visit in Iceland

Iceland, a land of fire and ice, is renowned for its stunning landscapes and natural wonders. While the Golden Circle, Blue Lagoon, and the capital city of Reykjavik are well-trodden by tourists, the country also boasts a wealth of hidden gems that offer a more intimate and unique experience. From quaint fishing villages to remote highland towns, these lesser-known destinations provide a glimpse into the heart of Iceland's culture and natural beauty. Here are seven off-the-beaten-track places that insiders recommend for an authentic Icelandic adventure.

Seyðisfjörður

Nestled in the Eastfjords, about a 7-hour drive from Reykjavik, Seyðisfjörður is a charming town known for its vibrant arts scene and well-preserved wooden buildings. The best time to visit is during the summer when the town hosts the annual LungA Art Festival. Cost-saving tips include booking accommodations in advance and considering a stay at a local guesthouse or camping. The town is also home to the Skaftfell Center for Visual Art, which is a hub for contemporary art in the region.

What to do: Explore the local art galleries, hike to the stunning Tvísöngur Sound Sculpture, or take a leisurely walk around the picturesque town.

Where to Stay & Eat: Enjoy fresh seafood at Nord Austur Sushi & Bar or traditional Icelandic cuisine at Hotel Aldan's restaurant.

Where to Shop: Browse unique Icelandic designs and crafts at the Bláa Kannan Café and shop.

Travel Tip: Don't miss the rainbow-painted street that leads to the iconic blue church, a perfect spot for a memorable photo.

Flatey Island

Accessible via ferry from the Snæfellsnes Peninsula, Flatey Island is a tranquil escape where time seems to stand still. The island is mostly car-free, making it an ideal spot for birdwatching and relaxation. Summer is the best season to visit, as many of the island's facilities are closed during the winter months. To save on costs, consider day-tripping from the mainland or staying at the island's only hotel, Hotel Flatey.

What to do: Take a leisurely stroll around the island, visit the old library, and enjoy the abundant birdlife, including puffins during the breeding season.

Where to Stay & Eat: Hotel Flatey offers comfortable accommodations and a restaurant serving fresh, local ingredients.

Where to Shop: The island's small shop offers souvenirs and basic necessities, perfect for a quaint shopping experience.

Travel Tip: Check out the beautifully painted Flatey Church, adorned with frescoes that depict life on the island.

Hofsós

Located in North Iceland, about a 4-hour drive from Reykjavik, Hofsós is a small town with a stunning infinity pool overlooking the fjord. The Hofsós swimming pool is a must-visit, especially during the summer months. To save on accommodation, consider staying at local guesthouses or camping in the area. The town also features the Icelandic Emigration Center, which tells the story of Icelanders who moved to North America.

What to do: Swim in the Hofsós pool, visit the emigration museum, and take in the breathtaking views of the fjord.

Where to Stay & Eat: Enjoy a meal at the cozy Kaffi Hofsós or stay at one of the town's guesthouses for a homey experience.

Where to Shop: Local handicrafts and souvenirs can be found at the emigration museum's gift shop.

Travel Tip: Take a drive along the scenic coast to witness the dramatic landscapes and nearby basalt columns at Hofsós.

Rauðasandur Beach

Situated in the Westfjords, Rauðasandur Beach is a remote stretch of red and golden sands unlike any other in Iceland. The beach is best visited during the summer when the roads are more accessible. To save on costs, camping in the area is a great option. Nearby, the Látrabjarg bird cliffs are a haven for puffins and other seabirds.

What to do: Enjoy a peaceful walk along the beach, visit the nearby bird cliffs, and take in the stunning sunsets.

Where to Stay & Eat: The Rauðasandur Café offers light refreshments, while local guesthouses provide comfortable lodging.

Where to Shop: The area is remote, so shopping options are limited, but local products can sometimes be found at the café.

Travel Tip: Visit during the Rauðasandur Festival, a family-friendly music and arts festival held on the beach each summer.

Borgarfjörður Eystri

This small village in the Eastfjords, about 10 hours from Reykjavik, is a paradise for hikers and nature lovers. The best time to visit is during the summer when the hiking trails are open and the puffins are nesting. Accommodations are limited, so booking in advance is recommended. The village is also known for its elf folklore, with the Álfaborg (Elf Rock) being a local landmark.

What to do: Hike the numerous trails, visit the Puffin Colony at Hafnarhólmi, and explore the elf lore of the area.

Where to Stay & Eat: Enjoy local dishes at Álfacafé or stay at one of the village's cozy guesthouses.

Where to Shop: Local artisans sell handmade goods, perfect for unique souvenirs.

Travel Tip: Don't miss the opportunity to learn about the local elf legends and visit the mystical Álfaborg.

Drangsnes

Located in the Westfjords, Drangsnes is a tiny village with geothermal hot pots right on the coastline. It's about a 5-hour drive from Reykjavik. Visiting in the summer allows for better road conditions and longer daylight hours. Staying at a local guesthouse or camping are the most cost-effective options. The hot pots are free to use and offer a unique experience with stunning views of the fjord.

What to do: Relax in the seaside hot pots, explore the nearby Grimsey Island, and enjoy the tranquility of this small fishing village.

Where to Stay & Eat: Malarhorn Guesthouse provides comfortable accommodations and a restaurant with local specialties.

Where to Shop: Shopping is limited, but the guesthouse may offer some local products.

Travel Tip: Take a boat trip to Grimsey Island to see the puffins and enjoy the untouched nature.

Skagaströnd

Skagaströnd is a small seafront village in North Iceland, about a 3-hour drive from Reykjavik. It's an ideal spot for those interested in folklore and the arts. The best time to visit is during the summer when the Spákonufellshöfði walking trail is accessible. For budget travelers, local guesthouses offer affordable rates. The village is also home to the Museum of Prophecies, which delves into the area's rich mystical history.

What to do: Walk the Spákonufellshöfði trail, visit the Museum of Prophecies, and enjoy the local art scene.

Where to Stay & Eat: Dine at the seaside Bjarmanes Café or stay at the Hótel Skagaströnd for a comfortable visit.

Where to Shop: Local artists often sell their work in the village, providing unique shopping opportunities.

Travel Tip: Climb the nearby Spákonufell mountain for panoramic views of the village and surrounding area.