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Iceland guide

Food & Dining in Iceland

What to eat, where to eat, what it costs — and how to eat like a local.

Food & Dining Quick Facts
Currency: Icelandic Króna (ISK)
Budget meal: Approx. 2,000–3,500 ISK for a simple lunch or fast-casual meal
Coffee: Approx. 500–900 ISK for a standard coffee
Dinner time: Typically 7:00–9:00 PM; restaurants often open from 5:30 or 6:00 PM
Tipping: Not expected or culturally obligatory; service is included in prices
Tap water: Excellent and safe to drink throughout the country; hot tap water may carry a faint sulfur scent from geothermal heating — normal and harmless
Vegetarian: Reasonably available in Reykjavík; more limited outside the capital
Reservations: Recommended for mid-range and upscale Reykjavík restaurants, especially on weekends
Local specialty: Lamb, skyr, pylsur (Icelandic hot dogs), plokkfiskur, harðfiskur (dried fish)
Main market: Kolaportið flea and food market in Reykjavík (weekends); Hlemmur Mathöll food hall
5 Foods to Know in Iceland
  1. Pylsur — The iconic Icelandic hot dog — lamb, pork, and beef blend — sold at stands across the country, affordable and genuinely beloved by locals
  2. Skyr — A thick, high-protein cultured dairy product eaten at breakfast and as a snack; distinctly Icelandic and found in every supermarket and café
  3. Plokkfiskur — A creamy, comforting fish stew of flaked white fish and potato — one of the most authentic traditional dishes still widely served
  4. Harðfiskur — Wind-dried fish (usually cod or haddock) eaten with butter; a centuries-old snack food that still appears on menus and in shops
  5. Kjötsúpa — Traditional Icelandic lamb and root vegetable soup — warming, simple, and a genuine window into everyday home cooking

A Taste of Iceland

Icelandic cuisine is rooted in centuries of survival in a harsh North Atlantic climate. With limited agricultural land and long winters, Icelanders historically relied on what the sea, the highlands, and small farms could provide: cod, haddock, Arctic char, and langoustine from surrounding waters; free-range lamb from the interior; dairy in the form of butter, cheese, and skyr; and preserved foods — salted, dried, smoked, and fermented — that could last through months of darkness. This legacy of preservation shapes the flavor profile of traditional Icelandic food: clean, restrained, and ingredient-focused rather than heavily spiced.

In the late 20th and early 21st centuries, Reykjavík's restaurant scene transformed rapidly. Chefs began reinterpreting traditional ingredients through a New Nordic lens — emphasizing local sourcing, seasonal produce, and minimal intervention — while the city also absorbed a cosmopolitan range of international influences. Today, travelers can eat their way from traditional lamb soup to Japanese-Icelandic fusion, often within a few blocks. Outside Reykjavík, the picture is simpler: petrol stations, grill houses (grill-bars), and small cafés form the backbone of rural dining, with an emphasis on lamb, fish, and hearty soups.

Geography continues to define what Iceland eats. Greenhouse-grown tomatoes, cucumbers, and herbs — made possible by geothermal energy — are genuinely local. Wild-caught fish is fresher than almost anywhere else. Lamb grazes on open highland for months before slaughter. These are not marketing claims but simply the conditions of island life, and they make even simple Icelandic meals taste distinctly of place.

Foods You Should Know

Icelandic Hot Dog · Pylsur
snack

A steamed hot dog made from a blend of lamb, pork, and beef, served in a soft bun with raw and crispy fried onions, ketchup, sweet brown mustard, and remoulade. Uniquely Icelandic and eaten at all hours.

Where: Hot dog stands throughout Reykjavík and petrol stations across the country

Creamy Fish Stew · Plokkfiskur
lunch

Flaked white fish — traditionally cod or haddock — mixed with mashed potato, onion, and béchamel-style sauce, often served with rye bread. A staple of Icelandic home cooking now featured on restaurant menus.

Where: Traditional Icelandic restaurants and cafés in Reykjavík and around the country

Lamb Soup · Kjötsúpa
lunch

A hearty broth-based soup made with bone-in Icelandic lamb and root vegetables such as turnip, carrot, and potato, seasoned simply with herbs. A foundational comfort food.

Where: Cafés, grill-bars, and traditional restaurants throughout Iceland

Dried Fish · Harðfiskur
snack

Fillets of cod or haddock air-dried in the cold Icelandic wind until stiff, then eaten in strips, typically spread with salted butter. High in protein and with an intense, clean oceanic flavor.

Where: Grocery stores, petrol stations, airport shops, and some cafés

Skyr
breakfastVegetarian

A cultured dairy product with a thick, creamy texture and mild tang, technically classified as a fresh cheese but eaten like yogurt. Served plain, with fruit, or as a base for desserts.

Where: Every supermarket, most cafés and guesthouses, and some restaurants as a dessert component

Langoustine · Humar
dinner

Icelandic langoustine — often called lobster locally — is caught in cold North Atlantic waters and prized for its sweet, delicate flavor. Grilled and served with garlic butter is the most common preparation.

Where: Seafood restaurants in Reykjavík; also famously served in the village of Höfn on the south-east coast

Lamb Fillet or Slow-Roasted Lamb · Lambalifur / Lambakjöt
dinner

Free-range Icelandic lamb, grazed on highland herbs and grasses, has a distinct, clean flavor. Served in various forms from pan-seared fillet to slow-roasted shoulder, often paired with root vegetables.

Where: Mid-range and upscale restaurants throughout Reykjavík; grill-bars elsewhere in the country

Rye Bread · Rúgbrauð
breakfastVegetarian

A dense, slightly sweet, dark rye bread traditionally slow-baked underground using geothermal heat (hence the nickname 'thunder bread'). Served with smoked salmon, butter, or harðfiskur.

Where: Bakeries, cafés, and some geothermal sites such as the Fontana Geothermal Baths area near Laugarvatn

Arctic Char · Bleikja
dinner

A freshwater fish native to Icelandic lakes and rivers, with a mild flavor similar to salmon but lighter. Typically pan-fried or cured and served as a starter.

Where: Seafood and New Nordic restaurants in Reykjavík

Fermented Shark · Hákarl
snack

Greenlandic shark that is buried, fermented for several months, then hung to dry — producing a strongly ammoniated flavor. A preserved food of historical necessity now treated as a cultural curiosity; challenging for most first-time tasters.

Where: Traditional food events, the Þorrablót midwinter festival, and some specialty shops

Icelandic Fish and Chips · Fiskur og franskar
lunch

Fresh local white fish — cod or haddock — battered or beer-battered and served with fries. Quality varies but the fish itself is generally very fresh given Iceland's fishing industry.

Where: Casual fish restaurants and harbour-area eateries in Reykjavík and coastal towns

Skyr Cake · Skyrkaka
dessertVegetarian

A chilled Icelandic cheesecake-style dessert made with skyr rather than cream cheese, resulting in a lighter, tangier texture. Often topped with berries.

Where: Cafés and bakeries across Iceland

Street Food & Quick Eats

Street food in Iceland is modest by international standards but has a handful of genuinely local touchstones. Pylsur (hot dog) stands are the primary street-food institution — look for standalone kiosks, often operating until late at night in Reykjavík. Bæjarins Beztu Pylsur, near the old harbour area in Reykjavík, is the country's most famous hot dog stand and has been operating for decades.

Beyond hot dogs, lobster soup in a bread bowl is sold at casual harbour-front spots in Reykjavík and is popular with visitors. Petrol stations across Iceland function as a significant quick-eat resource, particularly outside the capital — they typically stock sandwiches, soup, pylsur, and harðfiskur.

Food halls have grown in Reykjavík in recent years. Hlemmur Mathöll (in the Hlemmur bus station building) brings together multiple vendors under one roof and covers a range of cuisines and price points.

Food safety at all these options is generally high. Iceland has robust food hygiene standards and food-borne illness from commercial outlets is not a common traveler concern. Standard caution applies: check that hot food is served hot and that counters look well-maintained.

Where to Eat

Miðborg (Downtown/101 Reykjavík)

The highest concentration of restaurants, cafés, bars, and food shops in Iceland; covers everything from traditional Icelandic to international cuisine and fine dining

mixed
Hlemmur area

Home to Hlemmur Mathöll food hall; a transit hub that has become a food destination with multiple vendors, good for casual grazing

mixed
Old Harbour (Grandi)

Developing food district with seafood-focused restaurants, casual eateries, and the Grandi Mathöll food market; views of the harbour

mixed
Laugavegur / Skólavörðustígur

Reykjavík's main shopping and café street; high density of coffee shops, bakeries, and casual lunch spots

mixed
Höfn (south-east Iceland)

The langoustine capital of Iceland; small coastal town with restaurants specializing in fresh humar (langoustine), particularly during the annual Humarhátíð festival

moderate

Places Travelers Talk About

AI-researched from well-known establishments — always verify current status and hours before visiting. Nothing here is a paid placement.

Restaurants

Messinn
moderate
Downtown (Miðborg), Reykjavík

Seafood-focused restaurant popular for skillet-served fish of the day and langoustine; well-regarded for quality and value relative to upscale alternatives

Verify before visiting
Matur og Drykkur
upscale
Grandi / Old Harbour, Reykjavík

Modern Icelandic restaurant reinterpreting traditional recipes; known for creative takes on cod's head, skyr, and lamb using old cookbooks as inspiration

Verify before visiting
Dill Restaurant
upscale
Downtown (Miðborg), Reykjavík

New Nordic tasting menu restaurant focused on Icelandic ingredients; one of the most internationally recognized fine-dining destinations in Iceland

Verify before visiting

Cafés

Cafe Loki
moderate
Near Hallgrímskirkja, central Reykjavík

Traditional Icelandic food in a café setting; well known for plokkfiskur, rúgbrauð open-faced sandwiches, and skyr dishes

Veg friendlyVerify before visiting
Kaffivagninn
budget
Old Harbour, Reykjavík

One of Reykjavík's oldest cafés, frequented by harbour workers and locals; serves straightforward Icelandic fish dishes and daily soups at relatively modest prices

Verify before visiting

Bakeries

Brauð & Co
budget
Multiple locations in central Reykjavík

Popular artisan bakery known for sourdough, croissants, and cinnamon buns; often has a queue in the morning; good for a quick breakfast

Veg friendlyVerify before visiting

Street Food

Bæjarins Beztu Pylsur
budget
Old Harbour area, Reykjavík

Iceland's most famous hot dog stand, operating for decades; the definitive place to try a pylsur

Verify before visiting

Markets

Kolaportið
budget
Old Harbour, Reykjavík

Weekend flea and food market where locals buy and sell harðfiskur, traditional foods, and household goods; authentic and unhurried

Veg friendlyVerify before visiting

Food Halls

Hlemmur Mathöll
moderate
Hlemmur, central Reykjavík

Multi-vendor food hall in a repurposed bus terminal building; covers a range of cuisines and dining styles under one roof

Veg friendlyVerify before visiting
Grandi Mathöll
moderate
Grandi / Old Harbour, Reykjavík

Harbour-district food market with multiple vendors; strong seafood presence and casual atmosphere

Veg friendlyVerify before visiting

Groceries

Krónan / Bónus / Nettó
budget
Multiple locations across Iceland

Major Icelandic supermarket chains where travelers can buy skyr, harðfiskur, rúgbrauð, lakkrís, and affordable ready-to-eat options at local prices

Veg friendlyVerify before visiting
Vínbúðin
moderate
Multiple locations across Iceland

State-run alcohol store — the only place to purchase wine, spirits, and higher-ABV beer outside of bars and restaurants; look for Brennivín (local caraway aquavit)

Veg friendlyVerify before visiting

Meal Times, Hours & Reservations

Breakfast in Iceland is typically eaten between 7:00 and 9:00 AM. Hotel and guesthouse breakfasts are often substantial and buffet-style, commonly including skyr, rye bread, smoked salmon, eggs, and cold cuts. Many cafés open by 8:00 or 9:00 AM and serve breakfast or brunch items.

Lunch runs from roughly 11:30 AM to 2:00 PM. This is the best-value dining window in Iceland — many restaurants offer a lunch special (lunchpakki or dagmatur), which typically includes a main course such as soup, fish of the day, or a sandwich at a significantly lower price than the evening menu. These deals are worth seeking out given the overall cost of eating in Iceland.

Dinner is generally eaten between 6:00 and 9:00 PM, with restaurants accepting orders until around 10:00 PM in most cases. Icelanders tend to eat dinner somewhat later than, say, Northern European neighbours, but not as late as Southern European countries.

Reservations are advisable for dinner at mid-range and upscale Reykjavík restaurants, particularly on Friday and Saturday evenings and during peak summer months (June–August). For casual cafés and fast-casual spots, walk-ins are the norm. Outside Reykjavík, advance booking is wise simply because restaurant options may be limited, especially in rural areas.

Vegetarian & Vegan

Vegetarian travelers will find reasonable options in Reykjavík, where most restaurants include at least one or two meatless dishes and cafés commonly offer vegetarian soups, salads, and open sandwiches. Dedicated vegetarian and vegan restaurants exist in the capital, though their number is modest.

Vegan options are growing but still require some planning. Skyr is vegetarian but not vegan (it is a dairy product). Rúgbrauð (rye bread) is typically vegan. Many traditional Icelandic dishes are fish or lamb-based, so vegans should look for international restaurants, the food halls (Hlemmur Mathöll, Grandi Mathöll), or specifically plant-forward cafés in central Reykjavík.

Outside Reykjavík, vegetarian and vegan choices become significantly more limited. Petrol stations and grill-bars — which form the backbone of rural dining — tend to center menus around meat and fish. Packing snacks and being flexible is practical advice for vegan travelers on the Ring Road.

Ingredients to watch: Icelandic fish stock or fish sauce occasionally appears in soups that might otherwise seem vegetarian; it is worth asking. Skyr-based dressings and desserts contain dairy. Lamb fat is sometimes used in traditional baking.

Allergy & Dietary Phrases

Travelers with serious allergies should always confirm ingredients directly with the establishment.

I am allergic to fishÉg er með fiskallergiYeg er meth fiska-allergi
I am allergic to gluten / wheatÉg er með glútenallergi / hveitiallergiYeg er meth gloo-ten-allergi / kvay-ti-allergi
I am allergic to dairy / milkÉg er með mjólkurallergiYeg er meth myohl-kur-allergi
Does this contain nuts?Er þetta með hnetum?Er thetta meth h-neh-tum?
I do not eat meatÉg borða ekki kjötYeg bor-tha ehk-i kyoht

What Does It Cost — and Tipping

Street food500–1,500 ISK (hot dog, snack, or pastry)
Coffee500–900 ISK
Budget meal1,800–3,500 ISK (petrol station, fast-casual, or lunch special)
Casual restaurant3,500–6,000 ISK per person for a main course
Mid-range dinner7,000–14,000 ISK per person including starter and main
Fine dining18,000–35,000+ ISK per person for a multi-course tasting menu
Typical observed ranges — prices vary by season and venue.

Tipping is not expected in Iceland and is not part of the local dining culture. Service charges are included in menu prices, and staff wages are set accordingly. Most locals do not tip at restaurants, cafés, or bars.

That said, tipping is not unwelcome if you feel strongly about recognizing excellent service — rounding up a bill or leaving a small amount is occasionally done by visitors and will not cause awkwardness. There is no social expectation or pressure to do so, and you should not feel obligated. The absence of tipping is not a slight to service staff in the Icelandic context.

Food & Water Safety

💧 Tap water in Iceland is safe, clean, and widely considered among the best-quality drinking water in the world — there is no need to purchase bottled water anywhere in the country. Note that hot tap water is heated geothermally and may carry a faint sulfur smell, which is entirely normal and harmless.

Iceland has high food safety and hygiene standards, and food-related illness from commercial establishments is uncommon. A few practical notes:

  • Seafood is generally very fresh given the country's fishing industry, but standard caution applies with raw preparations.
  • Hákarl (fermented shark) is an acquired taste with a very strong ammonia odor; it is edible and safe but worth approaching cautiously on a first encounter.
  • Hot tap water has a sulfur smell due to geothermal heating — this is normal and the water is safe. Cold tap water has no such smell.
  • Rural dining options can be limited; checking that a restaurant or café is open before traveling to a remote area is sensible, especially outside summer peak season.
  • Travelers with severe food allergies should communicate clearly with staff, as English is widely spoken in Reykjavík restaurants.

What's in Season?

Iceland's short growing season and long winters have historically shaped what is eaten and when, and seasonality still matters even as modern supply chains have expanded availability.

Summer (June–August) is the most abundant period. Wild Arctic char and salmon are caught fresh. Seabird eggs (particularly guillemot) appear in very traditional contexts. Greenhouse-grown tomatoes, cucumbers, peppers, and herbs — produced year-round using geothermal energy but particularly vibrant in summer — are at their best. Lamb born in spring begins to appear on menus as the season progresses, with the finest autumn lamb arriving later.

Autumn (September–October) brings the rettir, the traditional sheep round-up from highland pastures. Autumn lamb (lamba) is considered the finest of the year — leaner and flavor-concentrated from months of free grazing — and appears prominently on restaurant menus.

Winter (November–March) is the season of Þorrablót, a mid-winter traditional feast (roughly January–February) celebrating old Norse preserved foods: hákarl (fermented shark), súrsaðir hrútspungar (pickled ram's testicles), salted lamb, blood pudding, and liver sausage. These are cultural dishes eaten at communal celebrations; they appear in some restaurants and specialty events during this period.

Langoustine season peaks in summer and early autumn, with the Höfn Humarhátíð (Lobster Festival) typically held in summer.

Skyr and harðfiskur are available year-round and are not seasonal, but they remain staples regardless of time of year.

Food Festivals

  • Þorrablót (January–February) — Midwinter traditional feast celebrating Old Norse preserved foods including hákarl, pickled meats, and blood pudding; primarily a community and cultural event rather than a public festival
  • Humarhátíð (Lobster Festival) (June–July (approximate; date varies)) — Annual festival in the south-east coastal town of Höfn celebrating fresh Icelandic langoustine with food stalls, outdoor cooking, and music
  • Menningarnótt (Culture Night, Reykjavík) (August) — Citywide cultural celebration in Reykjavík that includes outdoor food stalls, local producers, and communal eating alongside art and music events

Food to Take Home

Several Icelandic food products travel well and make genuinely representative souvenirs:

  • Harðfiskur (dried fish): Vacuum-packed and widely available in supermarkets, airport shops, and souvenir stores. Durable and distinctly Icelandic.
  • Skyr: Available in dried or concentrated form for travel; the fresh supermarket version is widely sold but check your home country's import rules for dairy.
  • Icelandic sea salt: Hand-harvested from geothermal seawater in the Westfjords; a relatively new product that has gained significant attention.
  • Crowberry or bilberry jams: Made from Icelandic wild-harvested berries; available in specialty food shops.
  • Lakkrís (licorice): Icelanders have a strong licorice culture and produce numerous local varieties, including chocolate-covered and salt licorice; available in supermarkets and candy shops.
  • Icelandic schnapps or craft spirits: Brennivín (an unsweetened aquavit flavored with caraway, sometimes called 'Black Death') is the traditional Icelandic spirit and available at Vínbúðin (the state alcohol store) and airport duty-free.

Customs note: Check your home country's regulations on importing meat, dairy, and fresh plant products. Packaged, commercially sealed goods generally face fewer restrictions than fresh items, but regulations vary significantly by destination country.

One Day of Eating in Iceland

Breakfast: Start at a local bakery or café in central Reykjavík — try skyr with Icelandic berries, a slice of rúgbrauð with smoked salmon, or a fresh pastry (vínarbrauð). Coffee culture is strong and the quality is generally good.
Morning snack: Pick up a pylsur from a hot dog stand — the one near the old harbour area is well-known — and order it 'with everything' (eina með öllu) to get the full combination of toppings.
Lunch: Take advantage of a lunch special (dagmatur) at a traditional Icelandic restaurant for plokkfiskur or kjötsúpa with rye bread — this is the most economical time to eat a proper sit-down meal.
Afternoon: Browse Kolaportið flea market (weekends only) for harðfiskur and local treats, or explore Hlemmur Mathöll or Grandi Mathöll food halls to sample from different vendors without committing to a full restaurant meal.
Dinner: Book ahead for a mid-range restaurant in the 101 Reykjavík area featuring Icelandic lamb or fresh seafood — Arctic char or langoustine if budget allows. Many kitchens close orders by 10:00 PM.
Dessert: End with a slice of skyrkaka (skyr cheesecake) at a café, or pick up Icelandic lakkrís (licorice) from a nearby supermarket for an affordable and distinctly local sweet.

Frequently Asked Questions

Is Iceland really as expensive for food as people say?

Yes — Iceland consistently ranks among the more expensive countries in Europe for dining out. However, smart choices significantly reduce costs: supermarket shopping, lunch specials (dagmatur), soup-of-the-day deals at cafés, and hot dog stands are all substantially more affordable than dinner at a sit-down restaurant. Budgeting roughly 2,000–4,000 ISK per person for lunch and 7,000–15,000 ISK for dinner is a realistic starting point.

Can I eat well outside of Reykjavík?

Outside Reykjavík, dining options are more limited. Petrol stations serve a practical role as food stops across the country and are generally better than their reputation — expect soup, sandwiches, pylsur, and pastries. Larger towns along the Ring Road will have at least one or two restaurants, typically offering lamb, fish, and burgers. Höfn on the south-east coast is notable for langoustine. Planning ahead and not counting on finding a restaurant at every stop is wise, particularly in the Westfjords and highlands.

Is it safe to drink the tap water in Iceland?

Yes, completely. Icelandic tap water is considered some of the cleanest in the world and is safe to drink everywhere in the country. The hot tap water has a faint sulfur smell due to geothermal heating — this is normal and the water is harmless. There is no reason to buy bottled water.

What is hákarl and should I try it?

Hákarl is fermented Greenlandic shark, cured over several months in a process that neutralizes natural toxins, then air-dried. The result is a strongly ammoniated, pungent food unlike almost anything else. It is edible and safe, but genuinely challenging for most first-time tasters. It is a historical food of necessity rather than a centerpiece of modern Icelandic cooking, and most Icelanders eat it only at the Þorrablót midwinter festival. If you are curious, approach with open-minded caution — and a glass of Brennivín alongside is the traditional pairing.

Are there good options for vegetarians or vegans?

In Reykjavík, vegetarians will find reasonable options at most restaurants, and dedicated plant-based cafés exist. Vegans need to plan more carefully — traditional Icelandic cuisine is heavily fish and lamb-based, and skyr (a staple) is a dairy product. The food halls (Hlemmur Mathöll, Grandi Mathöll) offer more variety. Outside Reykjavík, options thin considerably, and vegan travelers should carry snacks on road trips.

Do I need to tip at restaurants in Iceland?

No. Tipping is not expected or culturally required in Iceland. Service is factored into menu prices and staff are paid accordingly. You may round up or leave a small amount if you wish to acknowledge exceptional service, but there is no social obligation to do so.

Where can I buy alcohol in Iceland?

Wine, spirits, and beer above a certain alcohol percentage (currently 2.25% ABV) can only be purchased at Vínbúðin, the state-run alcohol stores. Supermarkets sell only low-ABV beer. Bars and restaurants serve alcohol but prices are substantial. The legal drinking age in Iceland is 20. Vínbúðin stores have limited opening hours and are closed on public holidays, so plan accordingly.

What is a good, affordable Icelandic food experience that is genuinely local?

A pylsur from a hot dog stand — ordered 'eina með öllu' (one with everything) — is as local and affordable as Icelandic food gets. Equally, a bowl of kjötsúpa (lamb soup) from a traditional café as a lunch special, or a packet of harðfiskur from the supermarket eaten with butter, gives you an authentic sense of everyday Icelandic food without the price of a restaurant dinner.

Run a restaurant, café or food business in Iceland? Or found a great spot? Submit it for review — approved listings appear in this guide.
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AI-researched guide, generated 2026-09-11. Restaurant status, hours and prices change — verify locally before relying on specifics.

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