Egilsstaðir is east Iceland’s main town, sitting in the broad Lagarfljót river valley inland from the fjords. With a population of around 2,500, it is not large by any measure outside Iceland - but it has the only airport in the east, the region’s largest supermarket, and a concentration of accommodation that makes it the natural base for exploring the East Fjords and the highland routes to the east.
The town itself is functional rather than scenic. The Lagarfljót lake (Lögurinn) alongside the town is Iceland’s third largest - home to the legendary Lagarfljótsormurinn, a worm-like creature supposedly inhabiting the depths, the Icelandic equivalent of the Loch Ness monster. The lake is pleasant for an evening walk regardless of your cryptozoological leanings.
For Ring Road travellers, Egilsstaðir typically represents a night after the dramatic East Fjords drive from Höfn or before the push north to Mývatn. Fly-drive visitors from Reykjavík often base here for two or three nights, using day trips into the fjords and highlands.
Getting There
Egilsstaðir Airport (AEY) is 2km from the town centre. Eagle Air and Icelandair both operate multiple daily flights from Reykjavík Domestic Airport (RVK), with flying times of 45–50 minutes. A taxi into town costs approximately ISK 2,000–2,500; many guesthouses offer pickups if contacted ahead. You can also pre-book a fixed-price transfer from Egilsstaðir Airport to avoid taxi uncertainty. Walking takes under 20 minutes with light luggage.
By car on the Ring Road: from Reykjavík it is approximately 700km (7–8 hours); from Akureyri it is 260km (2.5–3 hours) via the Ring Road north route; from Höfn it is 250km (3 hours) through the East Fjords. The Route 1 road surface throughout is excellent. Car hire at Egilsstaðir Airport is available - book in advance in summer, as east Iceland rental stock is limited.
Town Centre: The Main Accommodation Zone
Most accommodation in Egilsstaðir clusters within 2km of the town centre and airport. The location-within-town distinction matters less here than in larger cities - everything is driveable in under 5 minutes.
Budget Accommodation in Egilsstaðir (Under ISK 22,000)
Egilsstaðir Youth Hostel (HI) operates in a building on the lake edge, with dorm beds from approximately ISK 6,500 per person and private rooms from ISK 20,000. The hostel is functional and well-located, with kitchen access and a common room. It fills up in July and August - book at least three to four weeks ahead.
Lyngás Guesthouse and similar small properties offer private rooms from approximately ISK 18,000–22,000 with shared or private bathrooms. These are typical Icelandic guesthouse operations: clean, basic, family-run, with a breakfast option available at extra cost.
Camping: Egilsstaðir Campsite operates on the edge of the town, open late May through early September, with pitches from approximately ISK 1,800 per person per night. The facilities include heated bathrooms and a washing machine - above average for Icelandic town campsites.
Mid-Range Hotels in Egilsstaðir (ISK 25,000–50,000)
Hérað – Berjaya Iceland Hotels is Egilsstaðir’s flagship property and the most reliable mid-range option in east Iceland. The hotel occupies a purpose-built building in the town centre and offers comfortable en-suite rooms. Doubles run approximately ISK 32,000–48,000 in peak summer, dropping to ISK 22,000–30,000 in the shoulder months. The restaurant - one of the better ones in east Iceland - serves local game and fish. The hotel works for both business travellers and tourists.
A boutique guesthouse alternative with fewer rooms and more personality is available in the area. Prices run approximately ISK 28,000–42,000 in summer. The property is quieter than town-centre options and suits couples or solo travellers who prefer a less corporate atmosphere.
Skipalaekur Guesthouse on the lake edge has rooms with lake views running approximately ISK 24,000–34,000. The setting is calmer than the town centre and the views across Lagarfljót in the evening are genuinely good.
Self-Catering and Cottages
Laugarás Cottages and several similar cottage rental operations near Egilsstaðir offer self-contained units sleeping two to six people from approximately ISK 35,000–55,000 per night. For families or groups, the cottage format gives more space and kitchen access at a comparable per-head cost to hotel rooms.
Day Trips from Egilsstaðir
Hengifoss Waterfall: 40km south on Route 931 along the east shore of Lagarfljót. The walk from the car park takes around 1.5 hours return and passes Litlanesfoss (basalt columns waterfall) on the way. Hengifoss itself drops 128m - entry to the national park area is free.
Seyðisfjörður: 25km on Route 93 (the mountain road over the pass). The town is one of Iceland’s most scenic and the weekly Smyril Line ferry to the Faroe Islands docks here. Allow 2–3 hours minimum in Seyðisfjörður. See our where to stay in Seyðisfjörður guide.
Stuðlagil Canyon: 90km northwest via Route 923 (partly unpaved). The canyon has some of the most striking basalt columns in Iceland flanking a bright turquoise river. The main viewpoint is accessible in a 2WD car on dry days; the inner canyon requires 4WD.
East Fjords circuit: A full day driving the fjord villages - Reyðarfjörður, Eskifjörður, Neskaupstaður, back via Fáskrúðsfjörður - covers around 120km and takes a full day with stops. See our East Fjords guide for the full route.
Practical Notes
- Nettó supermarket in Egilsstaðir is the cheapest grocery option in east Iceland - stock up here before heading into the fjords or highlands where prices increase
- The town’s N1 petrol station is open 24 hours and has a café - important to know for early starts
- Egilsstaðir’s public swimming pool (Sundlaug Egilsstaða) charges approximately ISK 1,100 adult entry and has an outdoor hot pot
- Mobile coverage in Egilsstaðir town is excellent; it drops in some fjord side roads and highland routes
- In winter (November through February), Route 93 over the mountain to Seyðisfjörður can close in bad weather - check road.is before driving it