From Sheep to Sweater: Icelandic Wool in South Iceland
In South Iceland, much of that story can be seen up close. Sheep graze the region's farms and mountains, and wool is spun, dyed and knitted by local people in shops and studios that welcome visitors who want to learn more. Our new Knit Your Way Through South Iceland page gathers this in one place, with places to visit, background on the wool and the sweater, and answers to the questions travellers most often ask.
A growing interest in craft
Travel shaped by craft and local making has gained ground in recent years, and knitting holidays to Iceland are now offered by specialist operators in several markets. For many travellers, though, knitting is not the reason for the whole trip but a meaningful part of it: an hour in a dye studio, a conversation with the woman who knitted the sweater they are buying, or a few skeins of local yarn to take home. South Iceland's wool culture offers exactly that kind of experience, and much of it can be enjoyed at any time of year.
The story of Icelandic wool
Icelandic sheep came with the first settlers in the 9th and 10th centuries and have changed little since. Their fleece has two layers: tog, the long outer hair that sheds water, and þel, the soft inner fibre that keeps the warmth in. Together they make lopi, the light, lightly twisted yarn behind the classic lopapeysa with its patterned round yoke. Knitting reached Iceland in the 16th century and has been part of daily life ever since.
The Knit Your Way page includes three short explainers that are useful background for travellers: The Icelandic Wool Sweater, The Icelandic Sheep and Its Wool and Knitting in Iceland.
South Iceland Wool Week
Every year in early October, South Iceland Wool Week (Ullarvika á Suðurlandi) brings knitters together for workshops, farm visits and events across the region, with a specially designed hat pattern released each year. It is a lively time for anyone interested in the craft to be in South Iceland.
Icelandic knitting goes international: AI Knittakers
Icelandic knitting is also at the centre of Visit Iceland's newest campaign. Launched on 29 October 2026, AI Knittakers offers office workers in Iceland's key markets an alternative to the AI notetaker. Here, AI stands for Authentic Icelandic: a real Icelandic knitter joins a remote meeting, reads the room and knits a single word that sums it up, in Icelandic wool. The person who booked receives a photo of the knitter with the finished word, along with the knitter's story and home region, and is free to spend that hour on something better, such as planning a trip to Iceland.
Nearly 30 knitters from all regions of Iceland take part, including knitters from South Iceland, and bookings are free at AIKnittaker.com until 20 November. The campaign is run by Íslandsstofa (Business Iceland) together with Iceland's regional marketing offices, including Visit South Iceland.
The campaign puts Icelandic knitting in front of a broad international audience this autumn and shows a warm, human and slightly playful side of Iceland. For travellers whose curiosity it sparks, South Iceland is a good place to experience that culture first-hand.