28 Best Restaurants in Iceland

An attention-attracting Viking ship decked out with colorful shields acts like a visual ringmaster for this fabulous Hauganes restaurant, drumming up business for their fishy fare. Tasty seafood dishes and baccalá (salted codfish)–themed meals star on the menu alongside the seaside views. If you're lucky, you might just see a whale in the distance. 

There's only one option at Dill: a tasting menu with a modern spin on traditional Icelandic dishes. In 2017, Dill was the first restaurant in Iceland to be awarded a Michelin star, with chef Gunnar Karl Gíslason at the helm. The spot is known around town for precision, and making a reservation here will win you brownie points with locals.

From traditional fish pie and meat soup to a spectacular waffle fry, Íslenski Barinn covers a lot of ground on its menu, but the focus is local at this restaurant and bar. You'll also find only beers and spirits made in Iceland—so don't come here looking for imports.

This small restaurant in the heart of the city is famous for its fish pans: the sizzling catch of the day accompanied by butter-fried potatoes and seasonal vegetables. It's a basic dish, but it really can't be beaten.

This restaurant is located in the oldest section of Stykkishólmur inside a bright, airy building. The menu is full of local seafood, as well as lamb from the region. It's known locally as one of the nicest places around, and it definitely warrants a place on your "vacation splurge" itinerary.

Seashells, driftwood, and nautical knickknacks are cleverly incorporated in this well-designed space, where large windows overlook the bay. Here you can dine on some hearty seafood dishes while enjoying a spot of whale-watching; humpbacks and killer whales are often seen breaching in the bay. 

As with any restaurant in a coastal town—and Sker is located right on the sea—fish is the way to go here. Travelers also come (and come back) to this restaurant for its broad menu, which ranges from seafood and pizza to vegan options.

The old fish barrels used as seating in this humble harborside fishing shack are kept warm by an increasing number of tourists and the odd celebrity. The trademark lobster soup is just as good as its well-traveled reputation. Thankfully, a section at the back can now accommodate the influx of wayfarers, some of whom dine on the shamelessly advertised "Moby Dick on a Stick" minke whale kebab.

You never know exactly what the menu will be at the family-owned Tjöruhúsið, and for good reason: it all depends on what the local fishermen catch. You have your pick of two dinner seatings, at 7 pm and 9 pm (so don't be late), and three menu options—soup only, fish only, or fish and soup.

If you want the best meal you can get in Hellissandur—and possibly the entire region—head to Viðvík. The catch of the day is always a good bet in Iceland, but treat yourself to the three-course chef's menu here—you won't be disappointed.

Seafood is the spotlight at this restaurant inside the Radisson Blu 1919 Hotel. Do yourself a favor and sign over all control to your server when it comes to the wine—the recommendations are spot on.

Toss out any expectations of bar food at this microbrewery hot spot—the menu here will surprise you. From the Lobster Feast to the Beer Piri-Piri Chicken, there's more to Bryggjan Brugghús than its taps. If you can't stay for lunch or dinner, at least take advantage of the expansive patio with a beer in hand.

The owners of this food cart trained intensively in the United Kingdom to perfect British-style fish-and-chips before importing their skills to Iceland. With the excellent quality of fresh Icelandic fish thrown into a hearty mix of mushy peas and chips, which you can drown in malt vinegar, this street food option has become very popular with locals, who still get a kick out of the knowledge that Iceland won "the cod war."

The highlight of Fjöruborðið is the incredible lobster tail. Pay a bit more for the side order of veggies with couscous, and you're on your way to culinary delirium. Reservations are highly recommended. 

Located by the harbor, Forettabarinn serves up dishes from around the world along with local beers from the breweries that dot Iceland's coast. The small plates make it a great place to start the night, but the set menus also offer welcoming options for a full meal. The flavors bounce around the globe, from beef carpaccio and a Cajun-style burger to Caprese salads and pumpkin soup.

You'll get the best of land and sea at Galito, from burgers and cod to sushi and even pizza. There's something for everyone here, which is especially tempting in a region that isn't known for having a ton of restaurant options.

This attractive old harborside restaurant made mainly of driftwood serves some of the heartiest meals in town, featuring a blend of burgers and pasta with an emphasis on seafood and traditional Icelandic dishes. It can get lively under the low beams of the nautical-inspired tavern, especially when there’s live music playing. 

An honest family bistro run by a renowned and highly decorated chef is only a few minutes' walk from the harbor. Opt for the fish of the day; it is always fresh and delicious. The smell of freshly baked bread and organic coffee is enough to get any appetite going, and their famous date cake with caramel sauce and ice cream will win over any skeptic.

Three kilometers west of Eyrarbakki, this seafood restaurant sits almost right on the ocean—surprisingly uncommon in Iceland. Hafið bláa serves fresh seafood and very sweet Icelandic desserts.

Serving locally sourced seafood and lamb dishes, Malarkaffi is also popular for its memorable location with a veranda that overlooks the surrounding fjord. Note that this restaurant is closed during the wintertime.

Eyrarbakki's only restaurant can be found in a stately red house facing the town church. Thankfully, it happens to serve one of the best lobster soups in the south of Iceland. Be sure to treat yourself to the aptly named chocolate lava cake.

This charming harborside restaurant is open daily during the summer and by appointment throughout the rest of the year. Using locally grown ingredients, this restaurant serves popular fish dishes, a soup of the day, burgers, and a selection of cakes.

According to urban legend, it’s tradition for Icelanders returning home from abroad to make their first stop at this beloved restaurant, and indulge in chef Úlfar’s legendary fish strew. Not just a favorite with the locals, Þrír Frakkar—a curious name that can be interpreted either as "the Three Overcoats" or "the Three Frenchies"—has a number of high-profile celebrity fans, including chef Jamie Oliver, who reportedly dined on guillemot during his visit. Other cultural delicacies include smoked puffin, salt cod, and peppered whale steak.