5 Best Bars in City Center East, Reykjavík

Created by Akureyri-based brewery Einstök, interiors here are cozy and moody—large groups mingle with solo drinkers enjoying pints of Arctic Pale Ale and other seasonal brews. The outdoor seating is the best on Laugavegur and provides the ultimate people-watching perch.

One of the city's most famous cafés and nightspots—thanks to its associations with local and international celebs, like Damon Albarn from Blur—Kaffibarinn is a relaxed café during the day but it gets hopping come nightfall, when DJs show up and play all night.

Iceland's best gay bar, Kíkí Queer Bar is a spirited mix of locals and travelers on any given night. Located in the heart of Reykjavík's nightlife hub, you can dance until the early morning here.

The line of people waiting to get in to this bar stretches around the block on weekends. And it's totally worth the wait: inside, you'll find some of the city's best DJs, as well as a ton of locals relaxing and mingling. Prikið is open during the day, too, when the crowds are much smaller and it's a mix of people drinking coffee rather than beer.

This loud bar's open-floor plan can accommodate groups easily. The best seats are the pillow-topped benches along the window—they were practically made for people-watching. All of the cocktails are great here, but the classics are treated with special care; you can't go wrong with an Old Fashioned.