44 Best Restaurants in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

This family farm serves amazingly fresh dishes at their restaurant, Hlöðuloftið, including trout from the nearby lake and hamburgers from their own meat. But their downstairs ice-cream bar truly takes farm-to-table to another level with the delicious homemade ice cream you can enjoy while watching the dairy cows through a big glass window.

The only mushroom farmers in Iceland invite you to feast on pâté, spreads, sauces, and ice cream—all made out of mushrooms. There's an emphasis on slow cooking, and their herbs, meat, and vegetables come from neighboring farms.

Iceland might not be a place you’d normally associate with the production of delicious tomatoes, but thanks to the abundance of geothermal energy, hothouses like those at Fríðheimar can produce more than 300 tons of them a year. At its greenhouse café—a popular stop with those traveling on the Golden Circle route—its juicy variety of tomato is the star ingredient of every dish on the menu, including the superlative soup, the bizarrely good tomato ice cream, and perhaps the best Bloody Mary you’ll ever have. The homemade bread is a standout as well. Make sure to book in advance. 

Eating world-class food at a restaurant built into a lava cliff with views of the milky Blue Lagoon is a once-in-a-lifetime opportunity you will never forget. Lava Restaurant, the more casual of the Blue Lagoon's culinary options, offers gourmet meals perfect for some après-spa relaxation.

A stellar experience for the senses, the set menus at Moss Restaurant take diners on an Iceland-inspired food journey. Situated at the highest point of the Blue Lagoon, guests gaze through floor-to-ceiling windows upon the moonlike surroundings while enjoying delicious and diverse dishes made from seasonal produce gathered from the mountains, the rivers, the mossy fields, and the sea.

Tucked away in this small town is a local brewery that uses geothermal energy to make quirky and tasty beers and eclectic and delicious wood-fired pizzas. The selection of draft beers changes depending on what concoction these master brewers made that week, but expect to find very creative ingredients—many of which are local. 

Tucked away in the sleepy fishing town of Hafnarfjörður, Pallett looks at times like an ad from a 1970s issue of Vogue with its jungle of houseplants, a rotary telephone at the counter, and cassette player blaring in the background. But this is more than just a hipster hangout: the food is hearty, wholesome, and inherently British (think freshly baked scones with homemade jam) and the coffee is made from award-winning beans. Pálmar Þór, co-owner and resident coffee guru, is a national barista champion and makes a first-class Irish coffee that'll leave you feeling so serene, you might just want to stay in the 1970s a little longer.

Quick roadside hot dogs—pylsur in Icelandic—are a mainstay of Icelandic culture, and no trip to Selfoss would be complete without a stop at this famed eatery. One of the most beloved pylsur spots in the country, Pylsuvagninn has a strong following for a reason; if you're looking to be truly decadent, don't forget to order yours covered in cheese.

This eccentric café—located within an old converted U.S. school bus from the decommissioned Keflavik army base—is dripping with both character and caffeine. Grab a coffee, or, if you're adventurous, one of their custom blended tea infusions or mushroom lattes. They also have a great selection of bagels and sweet snacks. 

For those looking to try authentic Icelandic food, look no further than this beloved family-run eatery. Specializing in fresh fish, their ethos is all about sustainability and slow food. And clearly it's worked, as many Icelanders make the long trip to Vestmannaeyjar purely for a dinner here. So don't be surprised if even a quick lunch at Slippurinn ends up being the meal you rave about for months after.

Located in the oldest house in Selfoss, Tryggvaskáli takes you back a century to the sitting room of an upper-class family. Allow yourself to feel like the honorary guest at a dinner party; your hosts will offer excellent Icelandic and international farm-to-table dishes.

This restaurant celebrates the history of Hafnarfjörður with old fishing gear strung between the tables and chandeliers made from old buoys. Dive into seasonally focused Icelandic dishes with a twist while watching the boats huddle together in the harbor.

Stop at this local bakery for a taste of Icelandic pastries—be sure to try ástarpungar (deep-fried sweet bread with raisins), snúður (Icelandic cinnamon buns), or kókoskúla (sweet bread mixed with cocoa). They also serve fresh sandwiches, salads, and soups with sourdough bread.

At this great modern bakery-café by the harbor, you can enjoy delicious sourdough bread with tasty, original salads and mouthwatering pastries, either to eat there or to take with you on a road trip. In a city with as fierce a bakery scene as Hafnarfjörður, this spot is a true standout, and you’d be hard-pressed to find a local who isn’t obsessed with their cheese and tuna spreads.

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 in the second oldest building in Hafnarfjörður and shaped like a Norwegian Stave church, you will travel in time and land in a dark, wooden scene filled with Viking-inspired art. Fjörukráin serves traditional Icelandic meals on Viking-style trays carried by waiters dressed in Viking clothes. They often have live music, too, and if you're lucky singing Vikings will show up and join you. If you are sick of the Scandinavian chic that you will find in most restaurants in Iceland, Fjörukráin is the place for you. 

Immerse yourself in everything Viking—from the style of architecture to the menu. Excellent seafood and meat dishes are served for those leery of traditional fare. It's next to the Viking Hotel.

This popular lunch spot serves traditional Icelandic hot dishes, like fish and lamb stews, just a few meters from its namesake Golden Circle sight. They also offer pastries, pizza, and sandwiches, so the whole family should be able to find something to their taste.

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.

Located inside a high-ceilinged greenhouse, this organic café only serves products made from organically cultivated foodstuffs, with most of its pastries coming from the bakery in town. Experience the unique, positive atmosphere in Sólheimar while enjoying food and drink made with love.

Three kilometers (2 miles) 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.

For a more traditional sit-down Icelandic dinner in Flúðir, the Hill Hotel's restaurant is your best bet. While somewhat expensive, their classic fare will fill you up in an area with very few other restaurants.

Housed in one of the oldest buildings in South Iceland, this restaurant offers a panoramic view of the golf course below and the four volcanoes that guard the beautiful area. They serve fusion dishes that combine local, seasonal ingredients with South American techniques.

If there are two things Icelanders love, it's swimming pools and ice cream. This charming ice-cream parlor offers delicious flavors, including Icelandic favorites like Bragðarefur as well as the Icelandic version of gelato.

In any weather—even the most brutal snowstorm—Icelanders will meet their friends for an ice cream. Ísbúð Vesturbæjar is a famous family-owned ice-cream parlor with one of the best Bragðarefur (blended mix of crushed-up candy and vanilla soft-serve) in all of Iceland.

Overlooking the dark blue waters of Faxaflói Bay, Kaffi Duus has been part of the Keflavík Marina since the 1990s. They offer an extensive seafood menu that features a mix of Icelandic and Indian dishes, guaranteeing that anyone can find something to suit their fancy.

Located in a bright yellow historic house right by the river, Kaffi Krús has fed locals and tourists alike for over 25 years. In its charming setting, which is furnished with a mix of modern and antique pieces, they offer a variety of great pizzas, burgers, and cakes.

Simply put, Kanslarinn is like a classic American roadside diner with an Icelandic country twist. The space itself is not intended to impress, but their classic diner dishes and Icelandic favorites consistently deliver.