Seyðisfjörður: Iceland's Most Charming Town

Seyðisfjörður (population approximately 700) sits at the end of a fjord 27km east of Egilsstaðir. It’s one of the most visually distinctive places in Iceland — the approach over the mountain, the Norwegian-influenced timber architecture, the painted rainbow street, the blue church, and the constant presence of the fjord and waterfall-streaked mountainsides make it unlike anywhere else in the country. Artists have been drawn here for decades; it’s still a working artistic community.

Getting There

By car: 27km east of Egilsstaðir on Route 93. The road crosses the Fjarðarheiði mountain pass at approximately 630m — closed occasionally in winter, sometimes passable but difficult. Check road.is. The descent into the fjord is one of Iceland’s great drives.

By ferry: The Smyril Line Norröna ferry arrives from Tórshavn (Faroe Islands) and Hirtshals (Denmark). See smyrilline.com for timetables. This is a practical European entry route for those bringing vehicles.

There is no direct bus to Seyðisfjörður from outside the East Iceland area. A local taxi from Egilsstaðir costs approximately ISK 4,000–5,500 one way.

Blue Church (Bláa Kirkjan)

The centrepiece of the rainbow street, the Blue Church was built in Norway in 1894 and shipped to Iceland in pieces. The combination of the painted street, the blue exterior, and the fjord backdrop is the image most people associate with Seyðisfjörður. The interior is modest — the exterior is the attraction. Free to enter during open hours (typically summer weekdays).

Rainbow Street (Regnbogagatan)

A painted road from the harbour to the church in rainbow colours. Maintained as a community landmark. Best photographed in the morning before tour traffic arrives (if a ferry is in port, midday can be crowded). Free.

LungA Art Festival

An annual summer festival bringing artists, musicians, and performers to Seyðisfjörður. Typically held in late July. The festival uses the town’s unusual concentration of cultural space — old wooden buildings, a theatre, and outdoor areas. Check lungaschool.com for current dates and program. One of Iceland’s most genuinely creative small festivals.

Hiking in Seyðisfjörður Valley

The valley above the town has several marked hiking routes:

• Vestdalur Valley — A marked trail (5–7km return, approximately 2–3 hours) leading to a mountain hut and dramatic valley scenery behind the town. Accessible on foot from the town centre.
• Fjarðarheiðarleið — The old route over the mountain to Egilsstaðir, now a marked hiking trail (approximately 16km one way). A classic traverse with views of both fjords.

Tvistur waterfall — A single-drop waterfall on the mountainside above the town, visible from most of Seyðisfjörður. Reachable on foot in approximately 1.5 hours return from the town.

Tækniminjasafn Austurlands (Technical Museum)

Iceland’s technical and industrial history, focusing on the telecommunications and electrification of the country. Located in Seyðisfjörður because the town had Iceland’s first telephone exchange (1906) and hydroelectric station. Free or small admission. Allow 45 minutes.

Where to Stay

Hótel Aldan — The most distinctive hotel in the region, housed in several heritage wooden buildings in the town centre. Multiple properties at different price points. Doubles from approximately ISK 30,000–48,000.

Hafaldan Hostel — Award-winning hostel in the old post and telegraph building. Dorms from approximately ISK 6,500, private rooms from ISK 22,000. One of Iceland’s most atmospheric budget options.

Campsite Seyðisfjörður — On the fjord shore near the harbour. Open June–September. Approximately ISK 2,000 per person.

Where to Eat

Skaftfell Bistro — Attached to the Skaftfell cultural centre. Good coffee, soups, and light meals in a relaxed setting. Mains approximately ISK 2,200–3,800.

Við Árinni — Restaurant in a historic building near the harbour. Icelandic fish and lamb. Mains approximately ISK 3,000–5,000.

Kaffi Lára — Small café near the church. Coffee and cakes.