Iceland is a land of dramatic contrasts where fire meets ice, featuring active volcanoes, massive glaciers, geothermal hot springs, and the mesmerizing Northern Lights. This Nordic island nation offers breathtaking natural wonders from thundering waterfalls to black sand beaches, making it one of the world's most unique travel destinations.
Icelandic cuisine is rooted in its harsh environment – centuries of survival dictated preservation techniques like fermentation, smoking, and wind-drying that now define traditional food. Modern Iceland has developed a thriving New Nordic dining scene championed by Dill (Iceland's only Michelin-starred restaurant) that celebrates local ingredients: lamb from free-roaming highland flocks, Atlantic cod and langoustine, Arctic char from crystal-clear rivers, wild herbs, and skyr, the ancient dairy product eaten daily for 1,000 years.
Must-try dishes
Iconic dishes that define Iceland.
Plokkfiskur (Fish Stew)
Iceland's national comfort food: flaked haddock or cod mixed with béchamel sauce, potatoes, and onions, served with rye bread. A simple, warming dish that has sustained Icelanders for generations.
Where to try: Icelandic Street Food (Lækjargata 8), Matur og Drykkur (Grandagarður 2)
Price: $12-18
Kjötsúpa (Lamb Soup)
Hearty soup made from Icelandic lamb with root vegetables including turnip, carrot, and potato. The lamb in Iceland is exceptional – free-range animals that spend summers eating wild herbs in the highlands.
Where to try: Icelandic Street Food, most traditional restaurants and gas stations
Price: $12-16
Langoustine (Humar)
Iceland's finest seafood luxury – sweet, tender langoustine from the cold Atlantic waters. The town of Höfn on the east coast is famous for its annual Lobster Festival. Best eaten simply grilled with garlic butter.
Where to try: Sægreifinn (Geirsgata 8), Kopar Restaurant, Fish Company
Price: $20-55
Skyr
A thick, protein-rich dairy product that resembles Greek yogurt but is technically a fresh cheese made in Iceland for over 1,000 years. Eaten for breakfast with berries or as a dessert. High protein, low fat.
Where to try: Every supermarket and cafe in Iceland
Price: $3-8
Harðfiskur (Dried Fish)
Wind-dried haddock or cod that is torn apart and eaten as a snack with Icelandic butter. The traditional Icelandic snack for centuries, high in protein with an intense umami flavour.
Where to try: Kolaportið Flea Market, supermarkets, Icelandic Street Food
Price: $5-12
Hákarl (Fermented Shark)
Fermented Greenlandic shark aged for 4-6 months underground then hung to dry for several more months. Extremely pungent with ammonia aroma – Iceland's most notorious traditional food. Order it with Brennivín.
Where to try: Þrír Frakkar (Baldursgata 14), Kolaportið market tastings
Price: $10-15
Skyr Cheesecake
Modern Icelandic dessert using native skyr as the base for a light, tangy cheesecake topped with Icelandic crowberries or bilberries. A delicious contemporary interpretation of a traditional ingredient.
Where to try: Sandholt Bakery, most restaurants and cafes
Price: $8-12
Top restaurants
Handpicked picks for the best dining experiences.
Dill Restaurant
Iceland's first Michelin-starred restaurant offering innovative tasting menus featuring seasonal Icelandic ingredients. Chef Gunnar Karl creates sustainable dishes highlighting unique Nordic flavors with impeccable presentation. Intimate setting with exceptional wine pairings.
Hverfisgata 12, 101 Reykjavík
Snaps Bistro
Cozy French-style bistro with Icelandic twist serving classic dishes in casual atmosphere. Popular weekend brunch spot with excellent traditional French fare. Intimate setting perfect for date nights or casual dining.
Þórsgata 1, 101 Reykjavík
Bæjarins Beztu Pylsur
Iconic hot dog stand serving Reykjavik since 1937. Famous lamb-based hot dogs with unique remoulade sauce. Order 'eina með öllu' (one with everything) for the full experience. A must-visit Icelandic institution.
Tryggvagata 1, 101 Reykjavík
Hlemmur Mathöll Food Hall
First food hall in Reykjavik featuring multiple vendors under one roof. Options include Flatey Pizza, tacos at Fuego, Asian cuisine, and experimental bar Skál. Hip atmosphere in converted bus terminal building.
Laugavegur 107, 105 Reykjavík
Reykjavik Roasters
Specialty coffee roastery with multiple locations serving excellent single-origin beans. Cozy atmosphere perfect for working or relaxing. Also serves pastries and light breakfast items. WiFi available.
Kárastígur 1, 101 Reykjavík
Grillmarkaðurinn (Grill Market)
Upscale restaurant showcasing Iceland's finest ingredients cooked over open flames. Features exotic meats including puffin, reindeer, and whale alongside exceptional seafood and vegetables. Dramatic interior with lava stone and wood creating unique atmosphere.
Lækjargata 2a, 101 Reykjavík
Sægreifinn (Sea Baron)
Legendary harbor shack famous for grilled lobster soup and seafood skewers. No-frills atmosphere with fresh catches grilled to perfection. Cash only. A Reykjavik institution beloved by locals and tourists alike.
Geirsgata 8, 101 Reykjavík
Icelandic Street Food
Cozy spot serving traditional Icelandic comfort food in casual setting. Famous for hearty lamb soup served with homemade bread. Great value with authentic flavors and friendly atmosphere. Perfect lunch stop.
Lækjargata 8, 101 Reykjavík
Restaurants by cuisine
Browse picks grouped by cuisine type.
Traditional Icelandic
Icelandic Street Food
Matur og Drykkur
Þrír Frakkar (Three Coats)
Various
Hlemmur Mathöll Food Hall
Hafnartorg Gallery Food Hall
Grandi Mathöll Food Hall
Modern Icelandic
Kopar Restaurant
Hnoss at Harpa
Seafood
Sægreifinn (Sea Baron)
Fish Company (Fiskfélagið)
Asian
Noodle Station
Bakery
Brauð & Co
Bakery & Cafe
Sandholt Bakery
Burgers
Hamborgarabúllan (Bullan)
Cafe & Brunch
The Coocoo's Nest
Coffee & Light Meals
Kaffitár
Coffee & Pastries
Reykjavik Roasters
French-Icelandic
Snaps Bistro
Hot Dogs
Bæjarins Beztu Pylsur
Icelandic Fusion
Grillmarkaðurinn (Grill Market)
Icelandic Seafood
Messinn
International
Apotek Restaurant
Mexican
Tres Locos
New Nordic
Dill Restaurant
Pizza
Flatey Pizza Food Truck
Street food
Local flavours at affordable prices.
Icelandic Hot Dog (Pylsa)
The iconic Bæjarins Beztu Pylsur hot dog – made from a blend of lamb, pork, and beef with sweet remoulade, brown mustard, ketchup, raw onion, and crispy fried onion. Order 'eina með öllu' (one with everything). Bill Clinton famously ate one here in 2004.
Find it at: Bæjarins Beztu Pylsur, Tryggvagata 1 (near harbour). Open daily until 1 AM, Fri-Sat until 4:30 AM
Lobster Soup (Humarsúpa)
Rich, creamy bisque-style soup made from Icelandic langoustine served with fresh bread. The Sea Baron (Sægreifinn) serves the most famous version from a basic harbour shack – a legendary cheap luxury.
Find it at: Sægreifinn (Sea Baron), Geirsgata 8, Old Harbour
Flatey Pizza
Neapolitan-style thin-crust pizza made with quality Icelandic ingredients, available by the slice. Started as a street food concept and now has multiple locations including Hlemmur Mathöll food hall.
Find it at: Hlemmur Mathöll Food Hall (Laugavegur 107) and multiple locations
Rye Bread (Rúgbrauð)
Dense, sweet Icelandic rye bread traditionally baked in geothermal hot springs (known as 'thunder bread' or 'hot spring bread'). Eaten with butter and smoked lamb or gravlax at open-face sandwiches.
Find it at: Kolaportið Flea Market, Sandholt Bakery (Laugavegur 36)
Food markets
Where locals shop and graze.
Kolaportið Flea Market
Reykjavik's only flea market and the best place to taste traditional Icelandic foods including hákarl, harðfiskur, rúgbrauð, and smoked lamb. Housed in a warehouse by the harbour, with vendors selling everything from vintage records to homemade jams.
Hours: Sat–Sun 11:00 AM – 5:00 PM, Tryggvagata 19
Hlemmur Mathöll Food Hall
Reykjavik's first food hall in a converted bus terminal, with 8 vendors including Flatey Pizza, Skál craft beer bar, Mexican street food, and Asian fusion. Hip atmosphere with communal seating and excellent quality across all stalls.
Hours: Daily 11:00 AM – 11:00 PM, Laugavegur 107
Grandi Mathöll Food Hall
Harbour-side food hall in a former fish processing factory at the creative Grandi district. Fresh seafood, traditional Icelandic fish soup, sushi, and international options with waterfront views through large industrial windows.
Hours: Daily 11:00 AM – 9:00 PM, Grandagarður 16
Dining etiquette & tips
Navigate the local food scene confidently.
Lunch is the best value in Iceland – many upscale restaurants offer set lunch menus for $25-40 that would cost twice as much at dinner.
Book dinner reservations in advance for popular restaurants – Dill requires booking weeks ahead, and Grillmarkaðurinn and Fish Company fill up quickly in summer.
Icelandic lamb is some of the best in the world – always order it when it appears on the menu. The animals spend summers free-ranging in the highlands.
Tap water in Iceland is among the cleanest in the world and is served as standard in restaurants – never pay for bottled water.
Tipping is not expected or customary – service is included in prices and Icelandic service staff do not work for tips.
Food halls (Hlemmur and Grandi Mathöll) are the best value for a proper sit-down meal with multiple options to suit the whole group.
Food budget guide
What to expect at different price points.
| Level | Price | Description |
|---|---|---|
| Budget | $10-20/meal | Hot dog + supermarket food, Noodle Station, Icelandic Street Food |
| Mid-range | $30-55/meal | Sit-down traditional Icelandic restaurants, seafood at Sea Baron + bread |
| Upscale | $80-220/meal | Fine dining at Grillmarkaðurinn, Fish Company, or tasting menu at Dill |