From Sheep to Sweater: A Wool Route Through South Iceland
In South Iceland, the road from sheep to sweater is a short one. The sheep graze the mountains and valleys in summer and come home to the farms in autumn. Their fleece is washed, spun, dyed and knitted within the same region, often just a few kilometres from where it was sheared. Here you can see every step for yourself, and meet the people who make it happen.
For knitters, this closeness is part of the pleasure. Buy yarn in the place it was spun, watch colour come out of a dye pot, and hear the story behind a sweater from the person who knitted it.

The route
- Start at Hespuhúsið in Ölfus, an open plant-dye studio where Icelandic wool is coloured with plants using traditional methods.
- From there it is a short drive to Handverksskúrinn in Selfoss, a craft collective run by local women where everything on the shelves is handmade.
- Head north into the countryside to the Icelandic Woolmarket and Mill at Flúðir to learn about Icelandic sheep and see how wool becomes a finished product.
- Then return south to Þingborg, a wool shop in a 1920s community house east of Selfoss. Local women have run it since 1991, and its racks are full of hand-knitted lopapeysur in patterns you will not find anywhere else.
- A little further east, near the Þjórsá river, Uppspuni is Iceland's first mini mill. It is a family farm where fleece from the family's own sheep is spun into yarn. Tours need to be booked in advance.
- The route ends far to the east in Höfn at Dokk, a workshop and shop working with natural materials, including wool, and offering courses such as knitting.
Knit it into your trip
You don't need a separate trip to follow the wool. These stops sit along routes many visitors already travel, so you can knit them into your plans with ease. Hespuhúsið and Handverksskúrinn are close to The Lighthouse Way. Flúðir is part of the Golden Circle area. Þingborg and Uppspuni lie on the way to The Volcanic Way and the South Coast. Dokk in Höfn also rounds off a journey along the South Coast.
Take a day for the western stops, or weave the route through a longer stay. Either way, you'll go home with yarn that has a story, and a good idea of where it came from.
