When planning a trip to Iceland, most travellers picture glaciers, volcanoes, and stunning waterfalls—but cities in Iceland offer just as much charm and discovery. While the island is best known for its wild landscapes, the urban centres and towns of Iceland are full of life, history, and culture. Reykjavik city, Akureyri, Husavik, Ísafjörður, Egilsstaðir, Vestmannaeyjar, Höfn, Húsafell, Hveragerdi, Vík í Myrdal are some of them.
Whether you’re based in Reykjavík for day tours, or exploring the more remote regions like the East Fjords or the Westfjords, here’s our guide to the most important cities and towns in Iceland. From EastWest, we recommend these six essentials, and we’ll tell you why. Pay attention!
Reykjavík – Iceland’s Capital City
As the world’s northernmost capital, Reykjavík is the vibrant heart of Iceland. With colourful houses, cosy cafés, and a buzzing cultural scene, this compact capital city punches far above its weight. Visitors can stroll along the Old Harbour, enjoy fresh Icelandic cuisine, and experience art, music, and design all in one walkable downtown.
It’s also the base for most of EastWest small group tours, making it the perfect starting point for unforgettable adventures around the country.
Akureyri – The Capital of North Iceland
Akureyri is often called the “Capital of the North” and is Iceland’s second-largest city. Nestled at the base of the stunning Eyjafjörður fjord, Akureyri offers a calm and scenic setting with easy access to natural attractions like Goðafoss Waterfall, Lake Mývatn, and Dettifoss, one of Europe’s most powerful waterfalls.
The city has one of the northernmost botanical gardens in the world, just 85 kilometers South of the Arctic Circle. It’s possible to visit art galleries and even go skiing in winter.
It’s a must-visit if you’re travelling the Ring Road or heading to the north of Iceland.
Húsavík – Iceland’s Whale Watching Hub
Just a short drive from Akureyri, the charming coastal town of Húsavík has earned a reputation as the whale watching capital of Iceland. With its colourful harbour, wooden church, and friendly local vibe, Húsavík offers visitors the chance to connect with nature in a truly exceptional way.
The town also featured prominently in the Netflix film Eurovision Song Contest: The Story of Fire Saga, which brought global attention to this northern gem.
Ísafjörður – Westfjords Culture & Wilderness
Tucked into a narrow fjord in the Westfjords of Iceland, Ísafjörður is surrounded by mountains and dramatic seascapes. It’s the perfect base for hiking, sea kayaking, and birdwatching. This remote town is rich in maritime history and Icelandic traditions.
Reaching Ísafjörður is part of the adventure. Is ideal for travellers who want to experience a more rugged and authentic side of the country.
Egilsstaðir – The Heart of East Iceland
As the main hub of the Eastfjords, Egilsstaðir sits along the Lagarfljót River and serves as a peaceful base for exploring eastern Iceland. From here, you can visit small fishing villages, spot puffin colonies, or hike through untouched forests.
Legends say a sea serpent, similar to the Loch Ness Monster, lives in the nearby lake. Whether or not you believe it, Egilsstaðir offers a magical atmosphere for those looking beyond the typical tourist trail.
Vestmannaeyjar – The Volcanic Islands
Located off the south coast, the Westman Islands (Vestmannaeyjar) are one of Iceland’s most fascinating settlements. The main town, Heimaey, is built next to a volcano that erupted in 1973 and reshaped the island.
Visitors can hike up a volcano, visit a museum buried in ash… And watch thousands of puffins nest along the cliffs in summer. It’s a breathtaking mix of geology, wildlife, and Icelandic resilience.
Conclusion
Iceland’s cities may be small and scattered across vast landscapes, but each one is full of character. Whether you’re enjoying Reykjavík’s vibrant arts scene, wandering through Akureyri’s fjord-side charm, or discovering hidden villages in the Eastfjords, every town offers a unique window into Icelandic life.
Surrounded by nature and steeped in local culture, these locations are more than just points on a map. They’re gateways to adventure, connection, and memorable moments.
So, at EastWest, we invite you to go beyond the usual highlights and experience the heart of Iceland… One city, one story, one journey at a time.
Looking for the best way to get to these amazing places? We’ve got you covered in our helpful guide Tips to get Around In Iceland: A Complete Guide for Travelers.
