9 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.

Flúðasveppir Farmers Bistro

$$$ Fodor's choice

The only mushroom farmers in Iceland invite you to feast on pâté, spreads, sauces, and ice cream—all made out of mushrooms. There's an emphasis on slow cooking, and their herbs, meat, and vegetables come from neighboring farms.

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

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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.

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)

Pallett

$$ Fodor's choice

Tucked away in the sleepy fishing town of Hafnarfjörður, Pallett looks at times like an ad from a 1970s issue of Vogue with its jungle of houseplants, a rotary telephone at the counter, and cassette player blaring in the background. But this is more than just a hipster hangout: the food is hearty, wholesome, and inherently British (think freshly baked scones with homemade jam) and the coffee is made from award-winning beans. Pálmar Þór, co-owner and resident coffee guru, is a twice-national barista champion and makes a first-class Irish coffee that'll leave you feeling so serene, you might just want to stay in the 1970s a little longer.

Strandgata 75, Hafnarfjörður, Capital Region, IS-220, Iceland
354-571–4144
Known For
  • heaven for coffee nerds
  • part of the slow living movement
  • only place in Iceland that does mince pies

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.