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7 Small Iceland Towns You Can’t Miss Full of Epic Adventures

Windstar Star Legend Iceland

Welcome to the land of fire and ice, where majestic landscapes, cascading waterfalls, and epic adventures await in small towns across Iceland. Nestled amidst the rugged terrain and dramatic fjords, these hidden gems are a haven for nature enthusiasts seeking a dose of jaw-dropping beauty. From the otherworldly landscapes of Vik to the enchanting charm of Grundarfjörður, prepare to be mesmerized by Iceland’s stunning scenery that will leave you breathless – both from its sheer magnificence and the occasional gust of chilly wind and rain! So grab your rain gear, layers, and get ready to explore these small towns and regions that pack an awe-inspiring punch.

I traveled to most of these towns via the Star Legend – a small ship from Windstar Cruises. It was a great way to get all the way around the island in ease…and dare I say a little luxury too. The ship mainly moved to new ports at night which meant that I was able to really optimize my time in Iceland to visiting small towns and experiencing the wildlife and landscape instead of driving all the time.

After cruising around the entire island experiencing the hard-to-get-to communities, I rented a car for a couple of days to explore Southern Iceland in more detail. The ship itinerary didn’t stop in Southern Iceland – so it was my way to be able to experience all of Iceland’s small towns and best cities in 10 days total. Here are my favorite Iceland cities and towns I visited with some ideas of what you can do and see there.

What is the Biggest City in Iceland?

Reykjavik is the country’s capital and its largest town. Most visitors who travel to Iceland stop in Reykjavik. In fact – some people rarely leave the capital region if they are on a quick Iceland stopover. Even though it’s the largest city in Iceland, it still only has a population of 123,000, yet 60% of the Iceland populations lives in Reykjavik.

It’s a super capital city full of museums, high end restaurants, and shopping. I’ve spent time there in the past and decided to focus my time in the lesser known areas and towns. I much prefer to get out and explore the far corners of a country, away from where everyone else goes. And that’s exactly what I did.

Things You’ll find in Every Iceland Town and City

After spending a week traveling through the small towns in Iceland, there were a few things that stuck out to me; things that nearly every town had. After seeing these things multiple times, I concluded that they…

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