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Seyðisfjörður is a small town at the end of a long, steep-sided fjord in East Iceland, about 27 km (25–30 minutes) from Egilsstaðir over the Fjarðarheiði mountain pass. It has around 700 residents, Norwegian-style wooden buildings dating from the late 1800s, and is Iceland's only port for the Smyril Line ferry to the Faroe Islands and Denmark. Entry to the town is free, it is open all year, and most visitors spend a few hours to a full day here.
Seyðisfjörður was built up from the 1840s onward by Norwegian fishermen, who brought a style of colourful timber building not seen elsewhere in Iceland, and many of those original houses still stand around the harbour today. The most photographed street, painted with a rainbow leading up to the blue Seyðisfjarðarkirkja church, has become something of a symbol for the whole town, but the wider streets of wooden houses are worth exploring beyond that one spot.
The town's setting, deep at the end of a narrow fjord, makes it feel more separate from the rest of Iceland than most East Iceland towns, an impression reinforced by the mountain pass that has to be crossed to reach it. Two mountains stand over it: Bjólfur (1,085 m) to the west and Strandartindur (1,010 m) to the east, with waterfalls running down the slopes on both sides. That isolation has also helped it build a strong reputation for art and music. The LungA arts festival was held here every July from 2000 until its final edition in 2024, and the town still has an arts centre, artist residencies and a community of resident artists.
Walking the streets is a large part of the visit. Houses are painted in strong colours, some walls carry murals, and gardens hold sculptures made from iron, wood and recycled material. The natural harbour is big enough for Norröna, the car ferry that links Iceland with the Faroe Islands and Denmark, and that sea link to mainland Europe is why Seyðisfjörður has been a trading centre since the 19th century.
The story of the fjord starts in the settlement age. By tradition the first settler was a man called Bjólfur, who claimed the whole fjord, and the mountain above the town still carries his name.
Norwegian herring fishermen began settling Seyðisfjörður in the mid-1800s, bringing building styles and trades that shaped the town's distinctive look, still visible in the wooden houses that line its main streets. The area's history goes back further still: an 11th-century stave church was excavated at nearby Þórunnarstaðir, and Vestdalseyri, just outside town, was home to one of the world's first industrialised whaling stations in the 1860s.
The town has also seen hard times. In December 2020, after days of heavy rain, mudslides came down into the town and damaged 39 houses, twelve of which were destroyed.
Fjarðarheiði pass can close temporarily in winter storms, and its exposed, snowy road becomes a small ski area in winter. Check umferdin.is before driving in poor weather.
The town is small enough to see on foot in a couple of hours. These are the stops most visitors come for.
Seyðisfjörður has guesthouses, hotels, a campsite, restaurants, cafés, a cinema, a swimming pool, a small supermarket and a fuel station.
Seyðisfjörður itself has a small range of guesthouses and hotels for those who want to stay in the town, while Egilsstaðir, a short drive over the pass, has a wider choice.
About 27 km, around 25–30 minutes by car over the Fjarðarheiði mountain pass.
Yes, the Smyril Line runs a weekly car ferry to Tórshavn in the Faroe Islands and Hirtshals in Denmark.
Norwegian fishermen settled the town from the 1840s and built in a style not seen elsewhere in Iceland, which is why the wooden architecture stands out.
Usually, but Fjarðarheiði pass can close temporarily during storms, so it is worth checking road conditions first.
Rainbow Street and the Blue Church, the old Norwegian-style wooden houses, the Skaftfell arts centre, waterfalls such as Gufufoss, and the Skálanes nature reserve about 17 km out along the fjord.
You can visit all year, but April to October is the main season. Summer has the longest days and the easiest driving over Fjarðarheiði. In winter the town is quiet and the pass can close for short periods.
No. LungA ran every July from 2000 and held its final festival in 2024.
Tours and trips that include Seyðisfjörður, booked directly with a local travel agency in Iceland.
DAY TOURStuðlagil Canyon Tour from SeyðisfjörðurFrom 26,990 ISK per person
DAY TOURHidden Waterfalls E-Bike Tour in Seyðisfjörður, East IcelandFrom 22,900 ISK per person
DAY TOURSeyðisfjörður Jeep TourFrom 99,900 ISK per person
DAY TOUREast Fjords IcelandFrom 57,000 ISK per person
SHORE EXCURSIONHighlands of East IcelandFrom 61,000 ISK per person
SHORE EXCURSIONStuðlagil Canyon & VökFrom 49,900 ISK per person