Open Travel Guide
Restaurants in Capital Region

Best Restaurants in Capital Region 2026

Discover authentic local cuisine, top restaurants, and the best dining experiences in Capital Region.

Capital Region has 40+ restaurants and places to eat covered in this guide, led by Dill, Nostra and Grillmarkaðurinn (The Grill Market). Each entry below includes the practical details — what it costs, when to go, and how to plan around it.

The Capital Region (Höfuðborgarsvæðið) of Iceland is the country's most populous and vibrant area, centered around Reykjavik, the world's northernmost capital city. It encompasses seven municipalities including Reykjavik, Kópavogur, Hafnarfjörður, Garðabær, Mosfellsbær, Seltjarnarnes, and Kjósarhreppur, together forming Iceland's cultural, political, and economic heart. The region blends dramatic volcanic landscapes, steaming geothermal pools, world-class museums, and a legendary nightlife scene unlike anywhere else on earth.

Reykjavik's food scene has undergone a remarkable transformation, evolving from simple fish and lamb dishes to one of Europe's most exciting culinary destinations. The city's cuisine is rooted in pristine Icelandic ingredients — wild-caught Arctic fish, free-range lamb that grazes on Icelandic herbs, sustainably harvested langoustine, locally grown root vegetables, and dairy products (especially skyr) that have sustained Icelanders for centuries. Modern Reykjavik restaurants celebrate these ingredients with Nordic minimalism and occasional global influence, while traditional eateries and street food stalls preserve the honest flavors of Iceland's fishing and farming heritage.

Must-try dishes

Iconic dishes that define Capital Region.

Must try

Hot dog (pylsa)

Made with lamb and pork, served with crispy onion, raw onion, ketchup, mustard, and sweet remoulade

Where to try: Bæjarins Beztu Pylsur, Tryggvagata

Price: $5

Must try

Lobster soup (humarsúpa)

Rich, creamy bisque made with Icelandic langoustine and served with rye bread

Where to try: Sægreifinn (Sea Baron), Old Harbour

Price: $18

Must try

Skyr

Traditional Icelandic dairy product similar to thick yogurt, naturally high in protein and low in fat

Where to try: Supermarkets, Café Loki, most breakfast spots

Price: $4-8

Must try

Langoustine (humar)

Iceland's prized small lobster, best eaten simply grilled with garlic butter

Where to try: Messinn, Kopar, Fiskmarkaðurinn

Price: $30-45

Must try

Plokkfiskur

Traditional Icelandic fish stew of poached fish and potatoes mashed together — humble and wonderful

Where to try: Icelandic Street Food, Café Loki, Kaffivagninn

Price: $12-18

Must try

Rye bread (rúgbrauð)

Dense, sweet geothermally baked dark bread — buy a loaf at Sandholt or Bónus supermarket

Where to try: Sandholt Bakery, Café Loki

Price: $3-4

Must try

Hákarl (fermented shark)

Ammonia-cured Greenlandic shark — an acquired taste but a cultural rite of passage

Where to try: Café Loki, Kolaportið market

Price: $8-12

Must try

Skyr ice cream (skyrís)

Ice cream made with skyr — lighter and tangier than regular ice cream with unique Icelandic berry flavors

Where to try: Valdís Ice Cream, Hlemmur Mathöll

Price: $6

Top restaurants

Handpicked picks for the best dining experiences.

New Nordic

Dill

$$$$$4.9/5

Iceland's only Michelin-starred restaurant offers an extraordinary 7-course tasting menu that celebrates Icelandic ingredients at their finest. Chef Gunnar Karl Gíslason's menu changes with the seasons, featuring foraged herbs, wild game, sustainably caught fish, and skyr in unexpected forms.

Known for: Michelin-starred New Nordic cuisine with exclusively Icelandic ingredients

Hverfisgata 12, 101 Reykjavik

New Nordic

Nostra

$$$$4.8/5

An acclaimed fine dining restaurant with a strong focus on local and sustainable Icelandic produce, Nostra serves a rotating menu that highlights seasonal ingredients with modern Nordic technique. The wine list is exceptional and the warm, minimalist dining room creates an intimate atmosphere.

Known for: Seasonal Nordic fine dining with local Icelandic produce

Laugavegur 59, 101 Reykjavik

Icelandic Grill

Grillmarkaðurinn (The Grill Market)

$$$$4.7/5

Market-to-table Icelandic cooking at its finest, where prime cuts of Icelandic lamb, local beef, and the freshest seafood are grilled over volcanic stones. The dramatic basement dining room with its exposed lava walls creates an unforgettable atmosphere that matches the bold, beautiful food.

Known for: Premium Icelandic meats and seafood grilled on volcanic stone

Lækjargata 2a, 101 Reykjavik

Icelandic Seafood / Asian Fusion

Fiskmarkaðurinn (The Fish Market)

$$$$4.7/5

A creative and vibrant restaurant that fuses Icelandic seafood with Asian cooking techniques and flavors. The omakase sushi bar and fresh catch specials are outstanding, and the lively basement atmosphere under the Old Harbour makes it one of Reykjavik's most enjoyable dining experiences.

Known for: Icelandic seafood with Asian fusion techniques

Aðalstræti 12, 101 Reykjavik

Traditional Icelandic

Matur og Drykkur

$$$$4.7/5

Drawing inspiration from an old Icelandic cookbook, this celebrated restaurant transforms traditional Icelandic dishes into elegant modern interpretations. Dishes like cod heads in brown butter, fermented skate, and sheep's head soup are presented with artistry, honoring Iceland's culinary heritage.

Known for: Modern interpretation of traditional Icelandic recipes from the 1858 cookbook

Grandagarður 2, 101 Reykjavik

Icelandic Seafood

Messinn

$$$4.7/5

Famous for its fresh Icelandic fish served piping hot in cast-iron skillets, Messinn is consistently rated among Reykjavik's best restaurants. The simple, honest cooking lets outstanding locally caught fish — cod, haddock, and salmon — shine with seasonal vegetables and house-made sauces.

Known for: Fresh Icelandic fish in cast iron skillets

Lækjargata 6b, 101 Reykjavik

Icelandic Seafood

Sægreifinn (The Sea Baron)

$$4.6/5

A Reykjavik institution since 1994, this quirky harborside shack serves the most famous lobster soup in Iceland along with skewers of whale, langoustine, and fresh fish grilled to order. Simple, delicious, and utterly authentic, it's an unmissable experience in the Old Harbour.

Known for: Famous lobster soup and grilled seafood skewers

Geirsgata 8, 101 Reykjavik

French-Icelandic Bistro

Snaps Bistro

$$$4.6/5

A warm and convivial bistro with a French-influenced menu using Icelandic produce, Snaps is one of Reykjavik's most beloved neighborhood restaurants. The lively atmosphere, excellent wine list, and approachable prices make it a local favorite for weekday lunches and romantic dinners.

Known for: French bistro classics with Icelandic twist

Þórsgata 1, 101 Reykjavik

Restaurants by cuisine

Browse picks grouped by cuisine type.

Icelandic

Icelandic / International Breakfast

Bergsson Mathús

$$4.7/5

Reykjavik's most popular breakfast and brunch destination, Bergsson's cozy wood-paneled space fills up fast on weekends. The menu features beautifully presented açaí bowls, avocado toast, skyr-based dishes, eggs Benedict, and excellent coffee — a perfect start to any Reykjavik day.

Known for: Reykjavik's most popular brunch spot

Templarasund 3, 101 Reykjavik

Icelandic / International

Geysir Bistro & Bar

$$4.3/5

A well-run casual restaurant in the shopping district near Harpa Concert Hall, Geysir Bistro serves reliable Icelandic and international dishes at mid-range prices. The three-course lunch specials are excellent value and popular with business diners and tourists taking a break from Harpa.

Known for: Good-value Icelandic lunch specials near Harpa

Skógarhlíð 8, 101 Reykjavik

Icelandic

Matarkjallarinn (The Food Cellar)

$$$$4.6/5

Hidden in a historic cellar in the oldest part of Reykjavik, Matarkjallarinn offers an intimate fine dining experience focused on Icelandic ingredients. The vaulted stone ceilings and candlelit ambience complement a menu of beautifully executed dishes featuring wild game, foraged mushrooms, and coastal seafood.

Known for: Intimate Icelandic fine dining in a historic stone cellar

Aðalstræti 2, 101 Reykjavik

Café

Café / Light Food

Stofan Café

$4.6/5

A wonderfully cozy living-room café in Reykjavik's artistic quarter, Stofan (meaning 'the living room') fills old sofas and mismatched furniture with students and travelers nursing excellent coffee and homemade soups. The unhurried atmosphere, book-lined shelves, and free wifi make it a perfect daytime retreat.

Known for: Living-room café atmosphere with excellent coffee and wifi

Aðalstræti 2, 101 Reykjavik

Café / Brunch

Kaffihús Vesturbæjar

$4.7/5

A cherished neighborhood café in the residential Vesturbær district, beloved by locals for its cozy atmosphere, excellent coffee, and generous home-baked goods. The kind of genuine neighborhood café that doesn't cater to tourists, making it the most authentic Reykjavik café experience.

Known for: The most genuinely local neighborhood café in Reykjavik — tourists rarely find it

Melhagi 20, 107 Reykjavik

Coffee

Coffee / Café

Café Haiti

$4.6/5

Reykjavik's longest-running specialty coffee shop, run by a Haitian family since 1993, is a multicultural gem in the Old Harbour area. The cozy space serves excellent espresso, tea, and light food in a warm, unpretentious atmosphere beloved by locals for working, reading, and conversation.

Known for: Reykjavik's oldest specialty coffee shop with African coffee traditions

Geirsgata 7b, 101 Reykjavik

Coffee / Café

Mokka Kaffi

$4.5/5

Reykjavik's oldest café has been welcoming writers, artists, and intellectuals since 1958. The unchanged black-and-white décor, vintage coffee machines, and atmosphere of quiet contemplation make Mokka a window into Reykjavik's bohemian past. The waffles with cream and jam are legendary.

Known for: Reykjavik's oldest café serving waffles since 1958

Skólavörðustígur 3a, 101 Reykjavik

European

European / Deli

Ostabúðin

$$4.6/5

Reykjavik's beloved neighborhood deli and restaurant in the residential Skólavörðustígur area, Ostabúðin (The Cheese Shop) offers an outstanding cheese counter, artisan charcuterie, and a full bistro menu for lunch and dinner. Perfect for assembling picnic supplies or sitting down to a leisurely meal.

Known for: Artisan cheese, charcuterie, and European bistro dining

Skólavörðustígur 8, 101 Reykjavik

European / Wine Bar

Ostabúðin Cheese & Wine Bar

$$$4.7/5

The upstairs wine bar at Ostabúðin deli serves an exceptional selection of Icelandic and European cheeses with natural wines and small artisanal plates. One of Reykjavik's most intimate and sophisticated evening destinations for food and wine enthusiasts.

Known for: Best cheese and natural wine experience in Reykjavik

Skólavörðustígur 8, 101 Reykjavik

Icelandic Traditional

Icelandic Traditional

Icelandic Street Food

$4.5/5

A casual counter-service restaurant in the Old Harbour serving traditional Icelandic dishes at street food prices. The tender lamb soup served from a bread bowl, plokkfiskur (fish stew), and meat soup are hearty, warming, and authentically Icelandic — perfect for budget travelers wanting real food.

Known for: Traditional Icelandic dishes at street food prices

Hafnarstræti 19, 101 Reykjavik

Icelandic Traditional

Gamla Hafnarkráin (Old Harbor Tavern)

$$4.3/5

A cozy harbor tavern in Hafnarfjörður serving traditional Icelandic fishing town food in an atmospheric setting. The location beside the volcanic rock harbour, combined with fresh fish dishes and local lamb, makes this a worthwhile excursion from Reykjavik for travelers wanting to experience life beyond the capital.

Known for: Traditional Icelandic harbour town food in atmospheric Hafnarfjörður setting

Vesturgata 4, 220 Hafnarfjörður

Seafood

Icelandic Seafood

Kopar Restaurant

$$$4.6/5

Perched right on the Old Harbour waterfront, Kopar (Copper) serves beautifully prepared Icelandic seafood dishes in a stylish maritime setting. The langoustine bisque and catch-of-the-day preparations are outstanding, and the harbor views make every table memorable.

Known for: Icelandic seafood with harbor views

Geirsgata 3, 101 Reykjavik

Icelandic Seafood

Reykjavik Fish Restaurant

$$$4.4/5

A welcoming mid-range seafood restaurant near the Old Harbour serving fresh Icelandic fish in straightforward, well-executed preparations. Popular with local families and business lunches for its generous portions, reliable quality, and fish soup served in a bread bowl.

Known for: Reliable, fresh Icelandic fish at honest prices near the Old Harbour

Tryggvagata 8, 101 Reykjavik

Thai

Thai Noodles

Noodle Station

$4.5/5

A beloved budget-friendly institution in Reykjavik serving authentic Thai noodle soups in a simple cafeteria setting. With three noodle soup options in beef, chicken, or vegetarian versions, it's one of the best value-for-money restaurants in the city and perennially popular with locals and travelers alike.

Known for: Best value noodle soups in Reykjavik — three choices, all excellent

Laugavegur 86, 101 Reykjavik

Thai

Thai Koon

$4.4/5

A popular Thai restaurant in Reykjavik's 101 district serving authentic Thai curries, stir-fries, and soups at prices that are genuinely affordable by Icelandic standards. The pad Thai, green curry, and tom kha soup are particularly well executed and attract a loyal following.

Known for: Authentic Thai food at some of Reykjavik's most affordable prices

Hverfisgata 26, 101 Reykjavik

Traditional Icelandic

Traditional Icelandic

Café Loki

$$4.5/5

Directly across the street from Hallgrímskirkja church, Café Loki specializes in traditional Icelandic dishes served in a cozy, homey setting. Must-tries include the rye bread with smoked lamb, skyr with crowberries, and the legendary hákarl (fermented Greenlandic shark) for the brave.

Known for: Traditional Icelandic dishes including fermented shark

Lokastígur 28, 101 Reykjavik

Traditional Icelandic

Gamla Bærinn (Old Farm)

$$4.4/5

A long-established restaurant in Hafnarfjörður serving hearty traditional Icelandic cooking in a warm, rustic setting. The slow-cooked lamb, skyr-based desserts, and traditional Icelandic fish dishes represent home cooking at its best, and the location in Hafnarfjörður lava town adds authentic atmosphere.

Known for: Traditional Icelandic home cooking in Hafnarfjörður lava town

Strandgata 50, 220 Hafnarfjörður

Artisan Bakery

Artisan Bakery

Brauð & Co

$4.8/5

A beloved Reykjavik bakery famous for its extraordinary cinnamon rolls and creative pastries. The lines stretch outside on weekend mornings, which tells you everything you need to know. Simple counter service with a rotating selection of beautiful baked goods made fresh daily.

Known for: Reykjavik's most-queued-for cinnamon rolls

Frakkastígur 16, 101 Reykjavik

Burgers

Burgers

Hamborgarabúlla Tómasar (Tommi's Burger Joint)

$4.5/5

An Icelandic institution that predates the international burger revolution, Tommi's has been crafting unpretentious, excellent burgers since 1981. The no-frills Laugavegur location serves thick, juicy burgers made with Icelandic beef and is a beloved late-night destination after the Runtur bar crawl.

Known for: Icelandic beef burgers served since 1981 — open until 5AM on weekends

Laugavegur 22, 101 Reykjavik

Ice Cream

Ice Cream

Valdís Ice Cream

$4.7/5

An Icelandic love affair with premium ice cream made on-site at this Old Harbour gelateria. Despite Iceland's arctic climate, locals eat ice cream year-round, and Valdís uses Icelandic dairy to create unique flavors like skyr, licorice, and seasonal berry varieties that you won't find anywhere else.

Known for: Premium house-made ice cream with unique Icelandic flavors

Grandagarður 21, 101 Reykjavik

Icelandic Bakery

Icelandic Bakery / Breakfast

Sandholt Bakery

$4.7/5

Reykjavik's most beloved artisan bakery has been crafting exceptional breads, pastries, and open-faced sandwiches (smørrebrød) since 1920. The Laugavegur flagship location is perpetually busy with locals fueling up on perfectly laminated croissants, cinnamon rolls, and traditional rye bread (rúgbrauð).

Known for: Artisan Icelandic bread and pastries since 1920

Laugavegur 36, 101 Reykjavik

Icelandic Contemporary

Icelandic Contemporary

Petersen Svítan

$$$$4.6/5

A rooftop restaurant and bar atop the historic Petersen Húsið building in the city center, offering sweeping views of Reykjavik's rooftops and Hallgrímskirkja. The menu features refined Icelandic small plates and cocktails made with Icelandic spirits, making it one of the city's most atmospheric dining spots.

Known for: Rooftop dining with Hallgrímskirkja views and Icelandic cocktails

Ingólfsstræti 5, 101 Reykjavik

Icelandic Diner

Icelandic Diner

Kaffivagninn

$4.4/5

The oldest restaurant in Reykjavik's Old Harbour, Kaffivagninn (The Coffee Wagon) has fed fishermen and dock workers since 1935. The no-frills canteen-style diner serves generous portions of traditional Icelandic fish dishes, lamb soup, and hearty working meals at honest prices.

Known for: Reykjavik's oldest harbor diner serving fishermen since 1935

Grandagarður 10, 101 Reykjavik

Icelandic Street Food

Icelandic Street Food

Bæjarins Beztu Pylsur

$4.5/5

The most famous hot dog stand in the world has been feeding Reykjavik since 1937. Generations of Icelanders — and visiting presidents, rock stars, and travelers — have lined up at this iconic red kiosk for the iconic 'einn með öllu' (one with everything): crispy onion, raw onion, ketchup, mustard, and Icelandic remoulade.

Known for: World-famous Icelandic lamb hot dogs

Tryggvagata 1, 101 Reykjavik

International

International / Café

Laundromat Café

$$4.4/5

A wonderfully eclectic café-restaurant that combines a working laundromat with a full-service dining room across two floors. Known for its weekend brunch (one of Reykjavik's busiest), burgers, salads, and a basement with board games, Laundromat is a quirky institution for travelers and locals alike.

Known for: Quirky café with laundromat and popular weekend brunch

Austurstræti 9, 101 Reykjavik

Italian

Italian-Icelandic

Hornið

$$$4.5/5

Reykjavik's longest-running restaurant, operating since 1979, Hornið combines Italian comfort food with Icelandic ingredients in a cozy stone building. The langoustine pizza and seafood pasta dishes are the highlights, and the warm, cave-like atmosphere makes it enduringly popular.

Known for: Italian-Icelandic fusion in Reykjavik's oldest restaurant space

Hafnarstræti 15, 101 Reykjavik

Mexican

Mexican / Latin American

Pablo Discobar

$$4.5/5

A colorful and lively taqueria and cocktail bar in the heart of Reykjavik's nightlife district, Pablo Discobar serves creative tacos with Icelandic proteins — slow-cooked lamb, langoustine, and arctic char — in Mexican-inspired wraps. The mezcal cocktail list is the best in Iceland.

Known for: Icelandic proteins in Mexican tacos with excellent mezcal cocktails

Veltusund 1, 101 Reykjavik

Middle Eastern

Kebabs / Middle Eastern

Kebabinn

$4.3/5

The most popular late-night food destination in Reykjavik, Kebabinn has been serving enormous lamb kebabs and loaded falafel wraps to hungry Reykjavikurs since 1994. Open until 4AM on weekends, it's the essential last stop of the Runtur bar crawl and a beloved budget institution.

Known for: Late-night kebabs — the essential end to Reykjavik's Runtur

Laugavegur 66, 101 Reykjavik

Multiple

Multiple / Food Hall

Hlemmur Mathöll (Food Hall)

$$4.5/5

Reykjavik's vibrant food hall in a converted bus terminal at Hlemmur Square brings together a diverse collection of vendors offering everything from Icelandic langoustine tacos to Japanese ramen, Indian curry, and artisan pizza. The lively communal seating and bar make it the city's best casual dining destination.

Known for: Diverse food hall in a converted bus terminal

Laugavegur 107, 101 Reykjavik

New Icelandic

New Icelandic

Skál! Kitchen & Bar

$$$4.6/5

A casual-cool dining room in Hlemmur Mathöll food hall serving creative Icelandic small plates designed for sharing. The rotating menu features locally sourced ingredients prepared with global influences — a great way to explore modern Icelandic cuisine without the formality of a fine-dining establishment.

Known for: Creative Icelandic small plates for sharing

Laugavegur 107 (Hlemmur), 101 Reykjavik

Specialty Coffee

Specialty Coffee / Breakfast

Reykjavik Roasters

$4.7/5

Reykjavik's premier specialty coffee roaster with two locations in the city center, serving expertly brewed single-origin coffees alongside home-baked pastries and light breakfast items. The minimalist, light-filled spaces are popular with laptop workers and coffee aficionados.

Known for: Iceland's best specialty coffee with house-roasted beans

Kárastígur 1, 101 Reykjavik

Vegetarian

Vegetarian / Health Food

Gló

$$4.6/5

Reykjavik's beloved organic health food restaurant and juice bar with a globally-inspired menu of fresh bowls, salads, wraps, and warming soups. Using predominantly organic and locally sourced ingredients, Gló is the best option in the city for plant-based and health-conscious eating.

Known for: Reykjavik's best organic health food and vegetarian/vegan dining

Laugavegur 20b, 101 Reykjavik

Food tours & tastings in Capital Region

Eat your way through Capital Region with a guide.

Browse food experiences in Capital Region

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Street food

Local flavours at affordable prices.

Street food

Icelandic hot dog (pylsa)

Lamb and pork hot dog with all the toppings from Bæjarins Beztu — Iceland's most iconic food

Find it at: Tryggvagata 1, near Harpa Concert Hall

Street food

Lobster soup to go

Cup of rich langoustine bisque from Sægreifinn — perfect for eating while walking the harbor

Find it at: Geirsgata 8, Old Harbour

Street food

Skyr soft serve

Creamy skyr-based soft serve ice cream from various kiosks — low fat, high protein, delicious

Find it at: Hlemmur Mathöll and summer kiosks

Street food

Lamb sandwich at market

Slow-cooked lamb on rye bread from food market vendors

Find it at: Kolaportið weekend market

Street food

Fish and chips (Icelandic style)

Beer-battered fresh cod or haddock with Icelandic remoulade from harbor vendors

Find it at: Old Harbour food trucks

Food markets

Where locals shop and graze.

Kolaportið Flea Market

Weekend flea market with food stalls selling traditional Icelandic items including hákarl, dried fish, and homemade preserves

Hours: Sat-Sun 11AM-5PM

Hlemmur Mathöll Food Hall

Permanent food hall with multiple vendors in a converted bus terminal — the best casual food diversity in Reykjavik

Hours: Mon-Wed 8AM-11PM; Thu-Sat 8AM-1AM; Sun 8AM-11PM

Farmers Market (Bændabúðin)

Seasonal farmers market in Laugardalur with local producers selling fresh vegetables, dairy, and craft food products

Hours: Saturdays 10AM-2PM (May-September)

Dining etiquette & tips

Navigate the local food scene confidently.

Tip

Reykjavik is expensive by European standards — budget $15-20 for a basic sit-down meal

Tip

Lunch specials at most restaurants offer 2-3 courses for $18-28 — far better value than dinner

Tip

Supermarkets (Bónus, Krónan, Nettó) enable self-catering and can cut food costs by 60%

Tip

Many restaurants have limited hours — check in advance and book for dinner, especially weekends

Tip

Tipping is not mandatory but 10% is appreciated at restaurants for good service

Tip

The local Bónus chain is the cheapest supermarket — recognizable by its pink pig logo

Tip

Most restaurants are licensed to serve alcohol; Iceland's wine and beer prices are high but bars close at 1AM weeknights, 4AM weekends

Dietary info
Vegetarian
Vegetarian options available at most restaurants; vegan options growing but limited at traditional spots
Halal
Limited dedicated halal restaurants; kebab shops and some Middle Eastern restaurants serve halal meat
Gluten free
Widely catered for; most restaurants can accommodate on request; supermarkets stock gluten-free products

Food budget guide

What to expect at different price points.

Level Price Description
Budget $12-20 per meal Hot dogs, noodle soups, food hall vendors, supermarket meals, and budget eateries
Mid-range $30-50 per meal Casual restaurant main course with one drink; seafood at mid-range venues
Upscale $80-200+ per meal Fine dining restaurants including Dill, Nostra, Grillmarkaðurinn — tasting menus and wine pairing