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

Seyðisfjörður has limited but distinctive accommodation - book well ahead, particularly if arriving on the Smyril Line ferry when rooms fill across the whole town.

Budget: Hafaldan Hostel - Seyðisfjörður’s most atmospheric option, housed in the old telegraph building dating from 1913. Dorms from approximately ISK 7,000; private rooms from ISK 20,000–28,000. Some rooms have direct fjord views.

Mid-range: Aldan Hotel - restored 19th-century wooden buildings in the town centre, some of the oldest habitable structures in Seyðisfjörður. Rooms from approximately ISK 28,000–45,000 depending on room type and season.

Campsite: A basic campsite near the town centre. Facilities are simple. Approximately ISK 1,500–2,000 per person per night in summer.

Guesthouses and apartments: Several private guesthouses in the valley - limited in number, often booked weeks ahead in summer. Check booking platforms early.

The town has approximately 700 residents and very limited total accommodation. All options fill in July, particularly the week the Norröna ferry arrives Thursday–Friday.

For current availability and full options, see our Where to Stay in Seyðisfjörður guide.

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.

Browse Iceland tours - day trips, activity bookings, and multi-day packages across the country in one place.

Pre-book Keflavík airport transfers - Flybus and private options for the 45-minute route to Reykjavík.

Compare car hire in Iceland - a 4WD or campervan gives the flexibility to explore at your own pace.

Practical Information

Getting there by road: Route 93 from Egilsstaðir is 27km but the mountain pass (Fjarðarheiði) closes in severe winter weather. Check road.is before driving in winter and shoulder seasons. The descent into the fjord is dramatic - allow extra time and watch for ice on the switchback sections.

Getting there by ferry: The Norröna arrives Thursday evenings and departs Friday mornings in summer. Foot passengers can book a cabin for the onward crossing at smyrilline.com. Many European travellers use this as their Iceland entry point, bringing vehicles directly without flying.

Town size and services: Seyðisfjörður has one supermarket (Við Strondina, near the harbour), one petrol station, a post office, and basic medical facilities. For anything else, Egilsstaðir (27km west) has a larger supermarket, the regional hospital, and the nearest domestic airport (EGS - connections to Reykjavík with Eagle Air, approximately ISK 14,000–22,000 one way).

LungA Art Festival dates: Typically held late July. Check lungaschool.com for exact dates and accommodation advice - the festival brings a significant influx to a small town.

Explore Seyðisfjörður Further

• Things to Do in Seyðisfjörður - Blue Street, ferry connections, hiking to Vestdalsfossar, and the Technical Museum
• Seyðisfjörður vs Siglufjörður - East Fjords or North Fjords? Comparing Iceland’s two most photogenic small towns
• East Fjords guide - The broader region: Egilsstaðir, Borgarfjörður Eystri puffins, and the Ring Road circuit
• Egilsstaðir travel guide - The nearest main town, 27km west - services, accommodation, and airport
• Ring Road Iceland road trip - How Seyðisfjörður fits into the Ring Road circuit for car and ferry travellers
• Puffin watching in Iceland - Borgarfjörður Eystri, 70km north of Egilsstaðir, for Iceland’s best close-up puffin viewing