Reykjavik may be one of Europe’s smallest capitals, but its culinary scene punches far above its weight. Nestled between mountains and sea, this vibrant city offers a dining landscape that reflects both Iceland’s rich traditions and its modern global outlook. From steaming street food carts that offer salvation on chilly evenings to Michelin-recognized establishments pushing culinary boundaries, Reykjavik is a paradise for food enthusiasts willing to explore.

This comprehensive guide will take you through the capital’s diverse dining options, highlighting local favorites, hidden gems, and must-visit establishments that showcase the best of Icelandic cuisine and international influences. Whether you’re traveling on a shoestring budget or planning a once-in-a-lifetime gastronomic splurge, Reykjavik has something delicious waiting for you.

Understanding Reykjavik’s Food Culture

Before diving into specific recommendations, it’s worth understanding what makes Reykjavik’s food scene special. Traditional Icelandic cuisine was born of necessity in a harsh climate, where preservation techniques and using every part of available resources were essential for survival. Today, these traditions blend with New Nordic cooking philosophies emphasizing local, seasonal ingredients prepared with modern techniques.

Iceland’s geographic isolation has historically limited available ingredients, but contemporary Reykjavik chefs view this as an opportunity rather than a constraint. The pristine environment provides some of the world’s purest fish and seafood, free-range lamb that grazes on wild herbs, and unique foraged ingredients like Arctic thyme, birch, and berries.

While dining in Reykjavik can be expensive (like most things in Iceland), the quality typically justifies the price. Many restaurants proudly display where their ingredients come from, often naming specific farms, fjords, or mountain ranges.

Street Food Sensations

Bæjarins Beztu Pylsur

No food exploration of Reykjavik would be complete without visiting this humble hot dog stand. Operating since 1937, “The Best Hot Dog in Town” has served everyone from local workers to celebrities like Bill Clinton and Metallica. What makes these hot dogs special is their composition – made primarily with Icelandic lamb, along with pork and beef, and topped with raw onions, crispy fried onions, sweet brown mustard, ketchup, and remoulade. At around 500 ISK (about $3.50 USD), it’s one of the most affordable meals in the city.

Insider tip: Ask for “ein með öllu” (one with everything) for the full experience.

Noodle Station

When the Arctic wind cuts through your layers, few things are more comforting than the steaming bowls of Thai-inspired noodle soup at this tiny, perpetually busy establishment. Choose between beef, chicken, or vegetable options, each swimming in a fragrant broth with fresh vegetables and herbs. The limited menu allows them to focus on perfecting these few items at reasonable prices.

Lobster Hut (Humarhúsið á Hjólum)

This food truck near the old harbor serves up affordable lobster soup and lobster rolls that rival many sit-down restaurants. The langoustine (Icelandic lobster) is sweet and tender, and the soup comes with a slice of fresh bread. It’s perfect for a quick lunch while exploring the harbor area.

Icelandic Street Food

Despite its somewhat touristy name, this cozy spot offers authentic traditional Icelandic dishes in casual, affordable portions. Their unlimited refills policy on their signature lamb soup and shellfish soup makes it particularly good value. The staff’s friendly banter and complimentary desserts (typically traditional pancakes) add to the experience.

Food Halls & Markets

Hlemmur Mathöll

Housed in a renovated bus station, this food hall represents Reykjavik’s modern approach to casual dining. The diverse vendors include:

  • Skál! – Offering New Nordic small plates and natural wines
  • La Poblana – Authentic Mexican tacos and quesadillas
  • Bánh Mí – Vietnamese sandwiches with Icelandic touches
  • Kröst – Focusing on grilled meats and vegetables
  • Brauð & Co – Artisanal sourdough breads and pastries

The communal seating creates a lively atmosphere where locals and tourists mingle over varied cuisines.

Grandi Mathöll

Located in the rapidly developing Grandi harbor area, this food hall occupies a converted fish factory. Slightly less crowded than Hlemmur, it features vendors like:

  • Fjárhúsið – Traditional Icelandic lamb dishes with modern presentations
  • Fusion Fish & Chips – Offering Korean-inspired fish and chips
  • Micro Roast Vínbar – Coffee by day, natural wines by night
  • KORE – Korean street food with Icelandic ingredients

The industrial-chic setting provides views of fishing vessels and mountains beyond.

Kolaportið Flea Market

Only open on weekends, this indoor market includes a food section where you can sample traditional Icelandic delicacies like fermented shark (hákarl), dried fish (harðfiskur), and rye bread (rúgbrauð). It’s more about sampling and experiencing food culture than having a proper meal, but it’s an essential stop for culinary adventurers.

Casual Dining Favorites

Café Loki

Situated across from Hallgrímskirkja church, Café Loki specializes in traditional Icelandic home cooking. Their rye bread ice cream has achieved legendary status, while their “Icelandic plate” offers samples of traditional foods like dried fish with butter, smoked trout, and sheep’s head jelly. The second-floor dining room provides views of the church.

Fish Company (Fiskfélagið)

Located in a historic building in the downtown area, this restaurant offers “around the world” fish and seafood dishes with Icelandic ingredients. Their “Iceland” tasting plate features local fish prepared in traditional ways, while other dishes take inspiration from global cuisines. Their lunch specials offer excellent value compared to dinner prices.

Sægreifinn (Sea Baron)

A former fisherman’s shed turned restaurant, Sægreifinn is famous for its lobster soup and grilled fish skewers. The concept is simple: choose your fish from the display case, and they’ll grill it to perfection. The communal seating at wooden tables enhances the authentic harbor experience. Cash-only until recently, they now accept cards but maintain their no-frills charm.

Messinn

This seafood-focused restaurant specializes in pan-fried fish served in the same skillet it’s cooked in. Their arctic char with honey and almonds has developed a following among locals and tourists alike. The atmosphere is casual but stylish, with excellent service making it appropriate for both lunch meetings and date nights.

Icelandic Fish & Chips

Offering a healthier take on the British classic, this “organic bistro” uses spelt batter and olive oil for frying. Their “skyronnaise” dipping sauces (made with Icelandic skyr instead of mayonnaise) come in various flavors. Located near the harbor, it’s popular with families and health-conscious diners.

Mid-Range Gems

Public House Gastropub

This trendy spot serves Asian-fusion small plates with Icelandic ingredients. Their “pulsa” (hot dog) bao buns and Arctic char ceviche showcase the creative blending of cultures. The stylish interior features Icelandic design elements, while the bar serves innovative cocktails using local spirits and foraged ingredients.

ROK

Housed in a charming old building with a distinctive pointed roof, ROK specializes in small plates meant for sharing. Their seafood options shine, particularly the cod tongues with brown butter and their signature seafood soup. The second-floor dining area offers views of Hallgrímskirkja, while the small patio is perfect for rare sunny days.

Snaps Bistro

This French-inspired bistro has become a local institution for everything from business lunches to weekend brunches. Their moules frites (mussels and fries) showcase Icelandic shellfish, while the “fish of the day” is reliably excellent. The greenhouse-like enclosed patio filled with plants creates a wonderful atmosphere regardless of weather outside.

Matarkjallarinn (Food Cellar)

Set in a historic building’s cellar, this restaurant offers elevated Icelandic cuisine in a space combining rustic elements with modern design. Their reindeer tartare and langoustine tails are stand-out dishes, while the cocktail program featuring Icelandic herbs complements the food perfectly. Live piano music on weekends adds to the sophisticated atmosphere.

Sümac

Breaking away from seafood-heavy options, Sümac brings Middle Eastern and North African flavors to Reykjavik. Their lamb dishes incorporate Icelandic meat into traditional preparations like tagines and kebabs, while their mezze platters showcase local vegetables with exotic spices. The vibrant interior and shareable format make it perfect for group dinners.

Fine Dining Experiences

Dill

Iceland’s first Michelin-starred restaurant lost its star in 2019 but regained it in 2020—a testament to its resilience and innovation. Focused on New Nordic cuisine, Dill offers a tasting menu that changes seasonally, highlighting foraged ingredients, ancient preservation techniques, and artistic presentations. The dining room is intimate, with just 30 seats, making reservations essential (often weeks in advance).

Óx

Perhaps Reykjavik’s most exclusive dining experience, Óx seats just 11 guests around a chef’s counter hidden within another restaurant (Sumac). The multi-course experience feels like dining in someone’s home, with chefs explaining each dish’s story and ingredients. The menu changes regularly but always showcases hyperlocal and often overlooked Icelandic ingredients.

Moss Restaurant

Located atop the iconic Blue Lagoon’s Retreat Hotel (about 45 minutes from Reykjavik), Moss offers fine dining with panoramic views of the surrounding lava fields. Their seven-course tasting menu journey through Iceland’s terroir, from mountain to sea, is worth the drive from the capital. The wine pairing option features rare vintages and natural wines.

Grillið

Perched on the eighth floor of Hotel Saga, Grillið offers stunning views of the city alongside sophisticated modern Icelandic cuisine. Their tasting menu frequently features luxurious ingredients like langoustine, scallops, and locally raised beef. The elegant setting makes it perfect for special occasions.

Kopar

This harbor-front restaurant bridges the gap between mid-range and fine dining, offering beautiful plates without strict formality. Their “Adventure Menu” takes diners on a seven-course journey through Iceland’s best ingredients. The copper-accented interior and harbor views create a warm, inviting atmosphere despite the sophisticated food.

International Cuisines

While experiencing Icelandic cuisine should be a priority, Reykjavik offers excellent international options when you need a change:

Austur-Indíafjélagið

The “East India Company” has been serving authentic North Indian cuisine since 1994, making it one of Reykjavik’s longest-running ethnic restaurants. Their tandoori items and rich curries often incorporate Icelandic ingredients like lamb and seafood. The elegant colonial-inspired décor and attentive service justify the premium prices.

Ramen Momo

This tiny, authentic ramen shop was established by Nepal’s first Icelandic resident. The fusion of Japanese techniques with Tibetan influences creates unique broths and dumplings. With just a few seats, expect to wait or take your steaming bowl to go.

Núðluskálin

This Korean-inspired noodle house offers healing broths and vibrant flavors at reasonable prices. Their kimchi is made in-house, and the bibimbap features local vegetables and eggs. The minimalist design and counter seating make it perfect for solo travelers.

Burro

This lively tapas bar serves Latin American small plates with Icelandic twists. The ceviche often features Arctic fish, while their tacos might incorporate Icelandic lamb. Their pisco bar is the best in the city, with creative cocktails featuring South American spirits and local herbs.

Sushi Social

Fusion at its most creative, this restaurant combines Japanese techniques with South American flavors and Icelandic ingredients. Their volcano roll with local arctic char and their langoustine nigiri showcase how international concepts can highlight local bounty.

Café Culture

Coffee culture in Reykjavik is serious business, with locals considering cafés essential third spaces between home and work:

Reykjavik Roasters

The pioneer of specialty coffee in Iceland, with several locations throughout the city. Their knowledgeable baristas prepare meticulous pour-overs and espresso drinks using beans roasted in small batches on-site. Their sourdough and pastries make them perfect for breakfast or afternoon breaks.

Mokka Kaffi

Opened in 1958, this institution introduced espresso to Iceland and retains its mid-century charm. The walls display rotating art exhibitions, continuing a tradition that has made Mokka an important cultural hub for decades. Their hot chocolate and waffles are legendary.

Sandholt

This fourth-generation bakery expanded into a full café serving exceptional pastries, sandwiches on house-made bread, and excellent coffee. Their croissants are arguably the best in the Nordic countries, while their rugbrauð (traditional rye bread) showcases authentic Icelandic baking.

Kaffi Laugalækur

Located in a residential neighborhood away from tourist centers, this café operates in a former pharmacy. Their weekend brunches feature enormous plates of eggs, bacon, and pancakes that draw locals willing to wait for tables. Their coffee is sourced from Reykjavik Roasters, ensuring quality.

Sweet Treats & Dessert Spots

Valdís

This artisanal ice cream shop in the old harbor area often has lines stretching down the block. Their flavors change daily but might include uniquely Icelandic options like licorice, rye bread, or blueberry skyr alongside international classics. Their homemade waffle cones complete the experience.

17 Sortir

Specializing in traditional Icelandic pastries and cakes, this bakery’s name refers to the 17 different varieties of small cakes traditionally served at Icelandic Christmas buffets. Their vinarterta (prune layer cake) and kleinur (twisted doughnuts) provide authentic tastes of Icelandic home baking.

Brauð & Co

With several locations around the city, this modern bakery is recognizable by its graffiti-covered exterior. Their cinnamon rolls are Copenhagen-quality, while their sourdough loaves have developed a cult following. On weekends, arrive early as popular items sell out quickly.

Bars With Notable Food

Mikkeller & Friends

This Danish craft beer bar offers 20 rotating taps alongside excellent pizza from their Flatey Pizza operation. The minimalist Scandinavian design and knowledgeable staff make it a favorite among beer enthusiasts who don’t want to sacrifice food quality.

Jungle Cocktail Bar

Beyond creative cocktails featuring Icelandic spirits and foraged ingredients, their small food menu includes perfect drinking companions like wild mushroom croquettes and cured fish on house-made crackers. The lush interior justifies the name, creating a tropical escape from Icelandic weather.

Kaldi Bar

One of Iceland’s first craft breweries also runs this bar serving their own beers alongside simple but well-executed Icelandic dishes. Their fish and chips use local cod and their own beer in the batter, while their meat soup provides warming comfort on cold evenings.

Lebowski Bar

This Big Lebowski-themed bar serves excellent burgers and White Russians in a kitschy setting. Their “Icelandic burger” features free-range lamb with blue cheese and jam, showcasing how even theme restaurants can highlight quality local ingredients.

Dining Districts

Laugavegur & Skólavörðustígur

The main shopping streets form the heart of Reykjavik’s tourism district and contain many of the city’s restaurants. While some cater exclusively to tourists, many excellent establishments serve both visitors and locals.

Grandi Harbor Area

This former industrial area has transformed into a hip dining destination, with food halls, coffee roasters, ice cream shops, and restaurants occupying renovated warehouses. The maritime connection ensures seafood is especially fresh here.

Hlemmur Area

Following the food hall’s opening, this transportation hub has developed into a dining district with options ranging from quick bites to sit-down meals, radiating several blocks in all directions from the central hall.

Old Harbor

The area around the Maritime Museum and whale-watching departure points features restaurants with harbor views, many specializing in seafood caught by the boats visible from their windows.

Practical Tips for Dining in Reykjavik

Reservations

For fine dining and popular mid-range restaurants, reservations are essential, especially during the high season (June-August). Many restaurants allow online booking through their websites or platforms like Resy.

Tipping

Iceland does not have a tipping culture, as service is included in the pricing. While not expected, a small tip for exceptional service is appreciated but never required.

Tax & Pricing

The listed prices include VAT (value-added tax), so what you see is what you pay. Be prepared for sticker shock—food and alcohol are expensive in Iceland due to import costs and taxes.

Dietary Restrictions

Most restaurants are accommodating of dietary needs, with vegetarian options becoming increasingly common. For vegans or those with severe allergies, calling ahead is recommended.

Water

Tap water in Iceland is exceptionally pure and free. Don’t waste money on bottled water—just ask for “kranavatn” (tap water).

Alcohol

Alcohol is expensive and highly taxed. Many restaurants offer “happy hour” specials in early evening hours (typically 4-7 PM). The state-run Vínbúðin is the only retail outlet for purchasing alcohol to consume elsewhere.

Opening Hours

Many kitchens close earlier than you might expect (often by 10 PM), even if the establishment remains open for drinks. Check closing times when making later reservations.

Seasonal Food Events

Food & Fun Festival (February/March)

This annual festival pairs international chefs with local restaurants for creative collaborations highlighting Icelandic ingredients. Set menus during the festival offer good value for experiencing high-end cuisine.

Reykjavik Bacon Festival (August)

A celebration of all things bacon, with restaurants throughout the city offering special bacon-centric menus for a weekend.

Iceland Airwaves Music Festival (November)

While primarily music-focused, this festival coincides with special “off-venue” food events and collaborations between restaurants and visiting chefs.

Christmas Buffet Season (December)

Many restaurants offer traditional Icelandic Christmas buffets (jólahlaðborð) featuring both modern dishes and traditional items like smoked lamb and fermented skate.

Budget-Friendly Options

Dining in Reykjavik can strain travel budgets, but these strategies help manage costs:

  • Lunch specials: Many higher-end restaurants offer significantly discounted lunch menus with similar quality to their dinner service.
  • Happy hours: Follow the “Appy Hour” app to find current drink and food specials around the city.
  • Self-catering: The Bónus and Krónan supermarket chains offer reasonably priced ingredients for those with kitchen access.
  • Hot dog stands: Beyond the famous Bæjarins Beztu, several hot dog stands throughout the city offer affordable, satisfying meals.
  • Bakeries: Picking up sandwiches and pastries can provide substantial, delicious meals at lower price points than sit-down restaurants.

Hidden Gems Worth Seeking

Café Babalú

This eclectic, colorful café on a hill in the old town serves homemade cakes, hearty soups, and generous sandwiches in a quirky setting filled with mismatched furniture and pop-culture memorabilia. Their outdoor seating area is a sun trap on good days.

Vitabar

This unassuming sports bar serves one of Reykjavik’s best burgers—the “Forgotten Burger” with blue cheese—at prices significantly lower than trendier establishments. The no-frills atmosphere keeps it authentic despite growing tourist awareness.

Mandi

This Middle Eastern takeout spot offers massive portions of shawarma, falafel, and hummus that can easily feed two people. Popular with late-night crowds, it’s one of the few truly budget-friendly options in the downtown area.

Coocoo’s Nest

Hidden in a converted warehouse in the Grandi area, this family-run spot changes its concept throughout the day: California-inspired breakfast and lunch, sourdough pizza for dinner, and weekend brunch featuring their famous cinnamon buns. The small, homey space feels like dining in a friend’s stylish apartment.

Hampiborgari

Located outside the typical tourist areas, this burger joint uses high-quality Icelandic beef and unusual toppings like dates and blue cheese. Their hand-cut fries and homemade dipping sauces elevate the fast-casual concept without fine dining prices.

Conclusion

Reykjavik’s dining scene beautifully reflects Iceland itself—a place where tradition meets innovation, where harsh conditions have inspired creative solutions, and where quality and purity of ingredients take precedence over complexity. From humble hot dog stands to Michelin-starred experiences, the common thread is a deep respect for Iceland’s unique bounty and cultural heritage.

As you explore this compact but culinarily diverse capital, allow yourself to be surprised. Some of the best food experiences might come from that tiny café you ducked into to escape the rain, or the restaurant recommendation from your hotel’s night clerk. Come hungry, bring your sense of adventure, and leave with a deeper appreciation for how this island nation has transformed necessity into delicious art.