28 Best Restaurants in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

Efstidalur II

$$$ Fodor's choice

This family farm serves amazingly fresh dishes at their restaurant, Hlöðuloftið, including stuffed trout from the nearby lake and hamburgers from their own meat. But their downstairs ice-cream bar truly takes farm-to-table to another level with the delicious homemade ice cream you can enjoy while watching the dairy cows through a big glass window.

Lava Restaurant

$$$$ Fodor's choice

Eating world-class food at a restaurant built into a lava cliff with views of the milky Blue Lagoon is a once-in-a-lifetime opportunity you will never forget. The set menu offers a gourmet meal for pescatarians, vegetarians, and carnivores at a reasonable price (by Icelandic standards).

Norðurljosavegur 9, Grindavík, Southern Peninsula, 241, Iceland
354-420–8800
Known For
  • combines fine dining with the wild spirit of Icelandic nature
  • the perfect dine-in-your-robe post-spa meal
  • stunning lava rock wall

Moss Restaurant

$$$$ Fodor's choice
A stellar experience for the senses, the set menus at Moss Restaurant take diners on an Iceland-inspired food journey. Situated at the highest point of the Blue Lagoon, guests gaze through floor-to-ceiling windows upon the moonlike surroundings while enjoying delicious and diverse dishes made from seasonal produce gathered from the mountains, the rivers, the mossy fields, and the sea.

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Ölverk Pizza and Brewery

$$ Fodor's choice

Tucked away in this small town is a local brewery that uses geothermal energy to make quirky and tasty beers and eclectic and delicious wood-fired pizzas. The selection of draft beers changes depending on what concoction these master brewers made that week, but expect to find very creative ingredients—many of which are local. 

Breiðumörk 2, Hveragerði, South, 810, Iceland
354-483–3030
Known For
  • the Ölverk beer flight
  • pretzel with beer cheese dip
  • lots of unique pizza toppings (if you're adventurous, try the one with bananas)

Slippurinn

$$$$ Fodor's choice

For those looking to try authentic Icelandic food, look no further than this beloved family-run eatery. Specializing in fresh fish, their ethos is all about sustainability and slow food. And clearly it's worked, as many Icelanders make the long trip to Vestmannaeyjar purely for a dinner here. So don't be surprised if even a quick lunch at Slippurinn ends up being the meal you rave about for months after.

Strandvegur 76, South, 900, Iceland
481–1515
Known For
  • pan-fried fish that you'll later dream about
  • seven-course set menu that covers the best of Icelandic cuisine
  • bright and welcoming interior
Restaurants Details
Rate Includes: Closed Sun.–Tues. and late Sept.-May

Varma Restaurant

$$$$ Fodor's choice
This elegant restaurant is set in a glass solarium with panoramic views of the river Varmá and a beautiful green valley. It honors the Icelandic geothermal cooking technique where hot springs are used to cook delicacies from local, seasonal ingredients.
Hverhamrar, Hveragerði, South, 810, Iceland
354-483–4959
Known For
  • lamb fillet cooked 12 hours in the hot spring
  • incredible hot spring–cooked chocolate cake
  • chef's specialty includes an array of Icelandic dishes
Restaurants Details
Rate Includes: No lunch

Von Mathús

$$$$ Fodor's choice
This restaurant celebrates the history of Hafnarfjörður with old fishing gear strung between the tables and chandeliers made from old buoys. Dive into seasonally focused Icelandic dishes with a twist while watching the boats huddle together in the harbour.

Fjöruborðið

$$$$

The highlight of Fjöruborðið is the incredible lobster tail. Pay a bit more for the side order of veggies with couscous, and you're on your way to culinary delirium. Reservations are highly recommended. 

Fjörukráin

$$$$

Located in the second oldest building in Hafnarfjörður and shaped like a Norwegian Stave church, you will travel in time and land in a dark, wooden scene filled with Viking-inspired art. Fjörukráin serves traditional Icelandic meals on Viking-style trays carried by waiters dressed in Viking clothes. They often have live music too, and if you're lucky singing Vikings will show up and join you. If you are sick of the Scandinavian chic that you will find in most restaurants in Iceland, Fjörukráin is the place for you. 

Strandgata 55, Hafnarfjörður, Capital Region, 220, Iceland
354-565–1213
Known For
  • Viking-themed entertainment bordering on the kitschy
  • live music
  • fun history lesson
Restaurants Details
Rate Includes: No lunch

Fjörukráin Restaurant

$$$$

Immerse yourself in everything Viking—from the style of architecture to the menu. Excellent seafood and meat dishes are served for those leery of traditional fare. It's next to the Viking Hotel.

Strandgata 55, Hafnarfjörður, Capital Region, 220, Iceland
354-565--1213
Restaurants Details
Rate Includes: No lunch, Credit cards accepted

Gott Restaurant

$$$

An honest family bistro run by a renowned and highly decorated chef is only a few minutes' walk from the harbor. Opt for the fish of the day; it is always fresh and delicious. The smell of freshly baked bread and organic coffee is enough to get any appetite going, and their famous date cake with caramel sauce and ice cream will win over any skeptic.

Hafið Bláa

$$$

Three kilometers west of Eyrarbakki, this seafood restaurant sits almost right on the ocean—surprisingly uncommon in Iceland. Hafið bláa serves fresh seafood and very sweet Icelandic desserts.

Óseyri, Eyrarbakki, South, 816, Iceland
354-483–1000
Known For
  • must-try fish soup
  • fantastic views
  • quite a scenic spot to see the northern lights
Restaurants Details
Rate Includes: Closed Mon. and Tues.

HYGGE

$$$

Housed in one of the oldest buildings in South Iceland, this restaurant offers a panoramic view of the golf course below and the four volcanoes that guard the beautiful area. They serve fusion dishes that combine local, seasonal ingredients with South American techniques.

Strönd, Hella, South, 851, Iceland
354-772–2247
Known For
  • baked brie on garlic bread paired with Viking White Ale
  • chance to meet and chat with Icelandic golfers
  • fresh and filling Thai trout

Kaffi Duus

$$$

Overlooking the dark blue waters of Faxaflói Bay, Kaffi Duus has been part of the Keflavík Marina since the 1990s. They offer an extensive seafood menu that features a mix of Icelandic and Indian dishes, guaranteeing that anyone can find something to suit their fancy.

Kanslarinn

$$

Simply put, Kanslarinn is like a classic American roadside diner with an Icelandic country twist. The space itself is not intended to impress, but their classic diner dishes and Icelandic favorites consistently deliver.

Dynskálar 10c, Hella, South, 850, Iceland
354-487–5100
Known For
  • meat soup the way Icelanders like it
  • free Wi-Fi
  • local delicacy of pepper steak from horsemeat

Langbest

$$

For over 20 years, Langbest has fed the citizens of Reykjanesbær to great acclaim. This is a must-stop for some of the region's best pizza, but they also serve hamburgers, steaks, and more.

Keilisbraut, Reykjanesbær, Southern Peninsula, 235, Iceland
354-421–4777
Known For
  • signature béarnaise sauce that locals eat with their pizza
  • plenty of vegan and vegetarian options
  • impressive pizza

LiBRARY Bistro/Bar

$$$

This lively and elegant hotel bistro is perfect for a refreshing cocktail and a rich meal after a long day of endless lava fields and hot springs. On the weekends they serve brunch.

Mathöll Suðurlands

$$

High-end food halls are a big trend in Iceland—and Mathöll Suðurlands is right up there with the best of them. Part of the Greenhouse hotel and shopping center, it offers a number of established and up-and-coming eateries. Don't miss the delectable kimchi-smothered chicken burgers at Yuzu or, for the vegans, the stellar mushroom open-faced sandwich from Hipstur. 

Austurmörk 6, Hveragerði, South, 810, Iceland
464–7336
Known For
  • Yuzu's kimchi-smothered chicken burgers
  • cocktails at the Nýlendubarinn
  • option to have Asian-style fried noodles, fresh ice cream, and a few tacos for dinner

Minilik Resturant

$$

In an unassuming summer cottage at the town limits of Flúðir, you will find traditional Ethiopian specialties cooked and served by an Ethiopian-Icelandic couple. Eating spicy food with your hands surrounded by Ethiopian art is a real treat after a full day of sightseeing in the intense Icelandic terrain. Reservations are highly recommended. 

Skeiða- og Hrunamannavegur, Selfoss, South, Iceland
354-846–9798
Known For
  • plenty of vegetarian options
  • ceremonial Ethiopian coffee
  • only Ethiopian restaurant in Iceland
Restaurants Details
Rate Includes: Closed Mon.

Olsen Olsen

$$

The people of Keflavík talk about Olsen Olsen like it's a family member—its legend precedes it. Grab a burger and a Coke and get a taste of what it was like when the U.S. Army introduced Icelanders to rock 'n' roll and fast food.

Hafnargata 62, Reykjanesbær, Southern Peninsula, 230, Iceland
421–4457
Known For
  • affordable burgers
  • the Olsen Olsen sandwich (bacon and baked beans)
  • location in the heart of Keflavík

Rauða Húsið

$$$$

Eyrarbakki's only restaurant can be found in a stately red house facing the town church. Thankfully, it happens to serve one of the best lobster soups in the south of Iceland. Be sure to treat yourself to the aptly named chocolate lava cake.

Restaurant Mika

$$$

A kind Polish family runs this restaurant on the Golden Circle route. Don't let the humble exterior fool you: inside you will find some of Iceland's best pizzas and handmade chocolates.

Skólabraut 4, Selfoss, South, 801, Iceland
486–1110
Known For
  • delectable chocolate
  • great place to stop for food on the Golden Circle
  • langoustine, lamb, and lots of pizza

Röstin Restaurant—The Old Lighthouse Café

$$$

Even if you're not hungry, a stop by Röstin Restaurant is worth it for the sea views alone. Located on the second floor of the Heritage and Maritime Museum of Garðskagi, the eatery offers classic Icelandic meals with a twist. During summer you can sit outside and enjoy the breeze, and if you're lucky, you just might spot some whales in the distance. 

Skjól

$$

This laid-back and charming restaurant at a campground near Geysir serves excellent pizzas and burgers. They also have a selection of beer, as well as nachos—together they make the perfect ending to a long day of sightseeing.

Smiðjan Brugghús

$$

After a long day of exploring the south coast, a burger and beer from Vík's Smiðjan Brugghús is just what the doctor ordered. This brewery serves up its own luxurious craft beer brewed on the premises along with a selection of comfort food including wings, chicken and waffles, BBQ ribs, and, of course, loaded burgers. 

Stracta Bistro

$$$
A great option after a long day of traveling, this hotel restaurant offers an elegant but casual place to sit down and have a well-rounded Icelandic meal. They have an à la carte menu but also offer take-out box lunches for traveling guests.

Suður-Vík Restaurant

$$$

In an old beautiful house overlooking the mountains, Suður-Vík offers a wide variety of dishes, ranging from wild game to artisanal pizza. In the basement they have a bar that stays open late.

Við Faxa

$$

This charming low-key country restaurant and café is a nice pit stop on the Golden Circle, with a deck overlooking the beautiful Faxi waterfall. Stop by for coffee and homemade dessert or stay for a lovely piece of fish.

Biskupstunga, Haukadalur, South, 801, Iceland
354-774–7440
Known For
  • signature soup and bread perfect for a cold day
  • Golden Circle lunch spot
  • patio seating
Restaurants Details
Rate Includes: Closed winter