Ólafsvík

How a Booking Glitch Became a Gateway to One of Iceland’s Most Underrated Coastal Towns

The Best Places Aren’t Always Planned

There’s something thrilling about getting lost while traveling, especially when the detour leads somewhere unforgettable. When we set out to explore Iceland’s famed Snæfellsnes Peninsula, Ólafsvík wasn’t even on our radar. It wasn’t marked with stars on our itinerary, there were no Instagram tags saved, and we hadn't even read about it in the guidebooks.

But after a booking mishap left us without accommodations for the night, we scrambled to find a guesthouse nearby and ended up in this quiet fishing town tucked between mountains and sea. What began as a simple solution to a logistical problem evolved into one of the most enriching and unexpected experiences of our entire trip.

Ólafsvík: A Town Steeped in Maritime Legacy

Ólafsvík isn’t just a pretty postcard—it’s a town with history in its bones. One of Iceland’s oldest trading ports, it was granted commercial rights in 1687, becoming a vital hub for trade between Iceland and Denmark. Fishing has always been its lifeblood, and even today, you’ll see the town’s harbor bustling with activity: boats heading out in the early morning mist and returning with the day’s catch.

Wandering the streets, you get a sense of the town’s resilience and heritage. Old turf houses still dot the landscape nearby, and the Ólafsvíkurkirkja (the town’s modern-style church with sweeping triangular architecture) stands as a reminder of Iceland’s ability to blend tradition with bold design.

Culinary Surprises in a Quiet Fishing Village

We didn’t expect Ólafsvík to be a food destination, but Iceland has a way of surprising you.

🐟 Catch of the Day, Every Day

At a small harbor-side restaurant recommended by our guesthouse hosts, we tasted plokkfiskur (a comforting fish stew made with boiled cod, potatoes, and creamy béchamel) that redefined comfort food. The fish was so fresh it felt like it leapt onto the plate. We also tried harðfiskur, Iceland’s traditional dried fish snack, served with butter—a surprisingly addictive combo that’s pure Nordic energy food.

🍞 Home-Baked Hospitality

Breakfast at the guesthouse was equally memorable: warm rúgbrauð (a dense, sweet rye bread often baked underground using geothermal heat), thick homemade skyr with wild berries, and strong coffee, all served with a view of the fjord. It wasn’t just nourishing—it felt like being welcomed into someone’s home.

🦞 Langoustine Night

One night, we drove a short distance to Rif, a neighboring village, for a quiet dinner and were treated to langoustines grilled in garlic butter, served with crispy root vegetables and a glass of chilled white wine. The restaurant had no name on the outside—just a small chalkboard menu. But it was one of the best meals we had in Iceland.

What to Do in and Around Ólafsvík

We initially thought we’d just pass through the area. Instead, we used Ólafsvík as our base for exploring some of the Snæfellsnes Peninsula’s most spectacular and often overlooked gems. Here’s what we discovered:

🏔️ Snæfellsjökull National Park

Just minutes from town, this mystical national park is centered around the glacier-capped Snæfellsjökull volcano—the same one that inspired Jules Verne’s Journey to the Center of the Earth. Hiking trails, lava fields, and surreal mossy landscapes surround it. Whether you’re a photographer, a hiker, or just a dreamer, this place feels like stepping into a different world.

Driving through the base of the Snæfellsjökull mountain is otherworldly, a mystical site rooted in Icelandic folklore and literature. The road winds through moss-covered lava fields and volcanic ridges, with the glacier looming above like something out of Norse legend. Even in summer, the glacier gleams white, giving the entire peninsula a sense of mystery and power. Jules Verne wasn’t wrong—this place really does feel like the gateway to the center of the Earth.

We hiked a short trail with no one else around, with views of black lava fields, glacial rivers, and alien-like moss-covered rocks. There’s an energy here—quiet, vast, and timeless.

Bæjarfoss Waterfall

Just behind the town, a trail leads to Bæjarfoss, a narrow waterfall tumbling down the hillside. It’s not marked on many maps, but the locals will point the way if you ask. It became our morning ritual—coffee in hand, waterfall hike, silence all around.

Skardsvík Beach: Beauty, Solitude—and a Glimpse into Viking History

A short drive from Ólafsvík, this golden-sand beach feels more Mediterranean than Icelandic—until you’re reminded by the icy waves and volcanic cliffs. It’s a quiet spot perfect for picnicking, collecting polished stones, or just marveling at the contrast of black lava and golden sand.

Golden sands framed by black volcanic cliffs? Iceland never ceases to surprise. This beach felt like something out of a fantasy film. We watched Arctic terns fly overhead while the waves rolled in with incredible force. A perfect picnic spot.

You might come for the golden sand and surreal contrast of black lava cliffs, but Skarðsvík Beach holds a secret that few visitors realize: it’s also an ancient Viking burial site.

In the 1960s, archaeologists uncovered a pagan Viking grave just a short walk from the shoreline. The burial belonged to a man from around the 10th century, and the grave included typical Viking-age items like a sword and spear, which now rest in the National Museum of Iceland. The burial itself—set in sand and lava—was incredibly well-preserved and offered a rare insight into Viking-era life and death along Iceland’s western coast.

Standing there today, it’s easy to see why the Norse may have chosen this spot. The beach feels sacred, with its open horizon, wind-whipped cliffs, and raw, untouched atmosphere. It’s not hard to imagine a Viking longship offshore, sails full of wind, arriving to lay one of their own to rest.

Saxhóll Crater

About a 25-minute drive from Ólafsvík, Saxhóll is a perfectly shaped volcanic crater. A steel stairway lets you climb to the top with ease, where you’ll be rewarded with panoramic views of lava fields stretching to the sea. It’s a short, easy stop that offers a huge payoff.

Svörtuloft Lighthouse

This bold, bright orange lighthouse perched on a black lava cliff is not just striking visually—it’s a fantastic spot to feel the raw force of the North Atlantic. The wind here is relentless, and the crashing waves below create an almost cinematic sense of drama.

Kirkjufell & Kirkjufellsfoss

No visit to the peninsula is complete without stopping at Kirkjufell, Iceland’s most photographed mountain. But it’s the view from Kirkjufellsfoss, the nearby waterfall, that gives you that postcard-perfect scene: the mountain rising symmetrically behind twin falls, especially magical at golden hour or under the northern lights.

Seals at Ytri Tunga Beach

Most beaches in Iceland are wild and rocky, but Ytri Tunga, south of Ólafsvík, offers something rare: a chance to see seals up close. They love to sunbathe on the rocks, especially in the evening. We brought snacks and watched a dozen of them lounging, blinking lazily in the midnight sun. They were the unexpected highlight of our entire day.

Reflections: The Gift of Going Off-Route

Traveling to Iceland, we expected big sights and bucket-list moments—and we got plenty of those. But the real magic came in the unplanned, the unscheduled, the in-between. Ólafsvík wasn’t a headline destination, but it became a personal highlight.

It reminded us that sometimes, travel’s best gifts come when you don’t follow the plan. When you take the wrong turn, trust a stranger’s suggestion, or stay an extra day just because it feels right.

So if you're headed to the Snæfellsnes Peninsula, don't just pass through. Let Ólafsvík be your pause button. Eat well, hike slowly, talk to locals, and let the quiet charm of this fishing village sink into your memory. It may not be famous, but it just might become your favorite.

The Snæfellsnes Peninsula is often described as “Iceland in miniature,” and Ólafsvík is its quiet beating heart. It’s a place that doesn’t demand your attention but rewards it richly when given.

So if you find yourself heading that way, don’t just pass through—stay. Spend a few nights. Wander without an agenda. Talk to locals. Hike, eat, breathe, and soak in the silence.

Sometimes, the road less traveled doesn’t just take you somewhere new—it reminds you why you travel in the first place.

Traveler’s Tip:

Even in summer, bring a warm layer—it gets chilly by the coast. And ask your host where to go for dessert. Ours pointed us to a local woman who makes rhubarb cake with whipped skyr cream out of her home. Yes, it was as good as it sounds.