Eyrarbakki was once an important trading center for a large part of the region, and many of its old wooden houses have been carefully restored, giving the village a distinctive charm. Stokkseyri is known for its elf and troll museum, as well as a ghost museum for those looking for something a little more unusual. Þorlákshöfn is a growing harbor town and has a modern swimming pool with excellent facilities for young children.
Further inland, the villages of Flúðir, Reykholt, and Laugarvatn are also worth noting. Both Flúðir and Reykholt are known for geothermal cultivation, while Laugarvatn is home to the University of Iceland’s department of physical education. It is also known for Laugarvatn Fontana, a geothermal spa with natural steam baths.
Closer to the coast and located along the main highway are Hella and Hvolsvöllur, both of which offer useful services and several attractions nearby. Skógar is a very small place, but it is home to the impressive Skógafoss waterfall and an outstanding historical museum that is well worth a visit.
Vík í Mýrdal sits in a striking coastal setting and is one of South Iceland’s most memorable villages. Its black sand beaches and the dramatic sea stacks of Reynisdrangar have made it famous among visitors. Vík also has a tourist information center and the research and cultural center Kötlusetur.
Kirkjubæjarklaustur is a historic village surrounded by remarkable natural attractions. Further east, Höfn í Hornafirði is sometimes referred to as the lobster capital of Iceland. It offers a good range of services, including gas stations, banks, shops, hotels, and restaurants, many of them known for their lobster dishes.