20 Best Places to Eat in Iceland: The Ultimate Culinary & Dining Guide

Iceland's culinary scene is a celebrated fusion of fresh North Atlantic seafood, grass-fed mountain lamb, organic dairy, and creative modern Nordic gastronomy. From Michelin-starred dining rooms in downtown Reykjavík to rustic coastal langoustine houses and geothermal bakeries, dining in Iceland offers an extraordinary culinary adventure.

Must-Try Traditional Dishes

When dining across Iceland, make sure to sample these iconic national specialties:

Icelandic Lamb Soup (Kjötsúpa): A comforting, slow-simmered soup made with tender grass-fed lamb, rutabagas, potatoes, and herbs.
Humarsúpa & Langoustine: Rich, creamy Icelandic lobster soup or sweet pan-fried langoustine tails served with garlic butter.
Skyr: Traditional cultured Icelandic dairy product, dense and creamy, served with fresh berries or honey.
Plokkfiskur: A hearty fish stew made from flaked cod or haddock mashed with potatoes, onions, and creamy white sauce.
Rúgbrauð (Geothermal Rye Bread): Dark, dense rye bread baked slowly underground using natural geothermal heat.

20 Best Places to Eat in Iceland

1. Dill Restaurant

Cuisine: New Nordic Fine Dining
Location: Downtown Reykjavík
Must-Try Dish: Seasonal Michelin-Star Tasting Menu
About the Place: The first restaurant in Iceland to earn a Michelin star. Dill celebrates native ingredients, foraging, smoking, and traditional preservation techniques.
Explore More: Read our full guide to Dill Restaurant

2. Bæjarins Beztu Pylsur

Cuisine: Icelandic Street Food
Location: Old Harbour, Reykjavík
Must-Try Dish: Hot Dog "Eina með öllu" (With Everything)
About the Place: Operating since 1937, this legendary hot dog stand serves lamb-based hot dogs topped with ketchup, sweet mustard, raw onions, crispy fried onions, and remoulade.
Explore More: Read our full guide to Bæjarins Beztu Pylsur

3. Grillmarkaðurinn (The Grillmarket)

Cuisine: Upscale Icelandic Grill & Steakhouse
Location: Lækjargata, Reykjavík
Must-Try Dish: Grilled Icelandic Lamb Chops & Minke Whale Slider
About the Place: Housed in a stylish venue decorated with natural basalt stone and wood, serving open-fire grilled steaks, game, and fresh local catches.
Explore More: Read our full guide to Grillmarkaðurinn

4. Fiskfélagið (Fish Company)

Cuisine: Global Seafood Fusion
Location: Downtown Reykjavík
Must-Try Dish: Around-the-World Seafood Tasting Menu
About the Place: Located inside a historic 19th-century cellar, Fish Company crafts imaginative seafood dishes combining Icelandic seafood with international herbs and spices.
Explore More: Read our full guide to Fiskfélagið

5. Pakkhús Restaurant

Cuisine: Coastal Seafood & Langoustine
Location: Höfn, Southeast Iceland
Must-Try Dish: Pan-Fried Icelandic Langoustine Tails
About the Place: Set inside a converted harbor warehouse in the langoustine capital of Iceland, offering ocean views and sweet garlic-butter lobster tails.
Explore More: Read our full guide to Pakkhús Restaurant

6. Sægreifinn (The Sea Baron)

Cuisine: Casual Harbor Seafood
Location: Old Harbour, Reykjavík
Must-Try Dish: World-Famous Lobster Soup & Fish Skewers
About the Place: A rustic harbor shack founded by a retired fisherman, famous for warming bowls of rich lobster soup and fresh fish skewers grilled to order.
Explore More: Read our full guide to Sægreifinn

7. Rub23

Cuisine: Seafood & Sushi Fusion
Location: Akureyri, North Iceland
Must-Try Dish: Arctic Char with Signature Spice Rubs
About the Place: A popular restaurant in Akureyri specializing in fresh North Atlantic catches, premium steaks, and sushi rolls customized with spice rubs.
Explore More: Read our full guide to Rub23

8. Friðheimar Tomato Farm & Restaurant

Cuisine: Farm-to-Table Geothermal Greenhouse
Location: Reykholt, Golden Circle
Must-Try Dish: Unlimited Geothermal Tomato Soup & Fresh Tortilla Bread
About the Place: Dine right inside a massive geothermal greenhouse surrounded by tomato vines, serving famous tomato soup, green tomato apple pie, and tomato cocktails.
Explore More: Read our full guide to Friðheimar

9. Tapas Barinn

Cuisine: Icelandic Tapas
Location: Vesturgata, Reykjavík
Must-Try Dish: Icelandic Gourmet Feast (Puffin, Arctic Char, Lamb)
About the Place: A lively underground cellared venue blending Spanish tapas culture with native Icelandic delicacies served in small sharing portions.
Explore More: Read our full guide to Tapas Barinn

10. Messinn

Cuisine: Traditional Icelandic Fish Pans
Location: Lækjargata, Reykjavík
Must-Try Dish: Pan-Fried Arctic Char with Honey and Almonds
About the Place: A cozy, wood-accented restaurant famous for serving fresh fish sizzling right in hot copper frying pans at your table along with buttered potatoes.
Explore More: Read our full guide to Messinn

11. Tryggvabúð (Tryggvaskáli)

Cuisine: Modern Icelandic Countryside
Location: Selfoss, South Iceland
Must-Try Dish: Slow-cooked Icelandic Lamb Shank
About the Place: Located inside Selfoss's oldest wooden house built in 1890, offering creative country dining using local river fish and wild game.
Explore More: Read our full guide to Tryggvabúð

12. Fjöruborðið

Cuisine: Seafood & Lobster House
Location: Stokkseyri, South Coast
Must-Try Dish: Iconic Langoustine Soup & Garlic Butter Lobster Tails
About the Place: A coastal institution near Selfoss, famous across the country for rich langoustine soup and mountains of garlic-sautéed lobster tails.
Explore More: Read our full guide to Fjöruborðið

13. Kaffi Smidjan

Cuisine: Bakery & Artisan Café
Location: Vík í Mýrdal, South Coast
Must-Try Dish: House-roasted Coffee & Fresh Cinnamon Buns
About the Place: A cozy coffee roastery and bakery in Vík, serving exceptional specialty coffee, sourdough sandwiches, and fresh baked pastries.
Explore More: Read our full guide to Kaffi Smidjan

14. Tjöruhúsið

Cuisine: Traditional Westfjords Catch of the Day
Location: Ísafjörður, Westfjords
Must-Try Dish: Pan-Fried Catch of the Day Skillet Buffet
About the Place: Housed in a historic 1781 red wooden log cabin, serving buffet-style cast-iron skillets filled with freshly caught fish cooked in butter and herbs.
Explore More: Read our full guide to Tjöruhúsið

15. Naustið

Cuisine: Local Seafood
Location: Húsavík, North Iceland
Must-Try Dish: Traditional Plokkfiskur (Fish Stew)
About the Place: A yellow wooden house restaurant near Húsavík harbor, renowned for comforting home-cooked fish soup, plokkfiskur, and friendly local service.
Explore More: Read our full guide to Naustið

16. Laugavegur Food Hall (Hlemmur Mathöll)

Cuisine: Food Hall / Global & Local Street Food
Location: Hlemmur, Reykjavík
Must-Try Dish: Gourmet Open-faced Smørrebrød & Artisanal Tacos
About the Place: A converted central bus station turned bustling gourmet food market hosting diverse food vendors, wine bars, bakeries, and international stalls.
Explore More: Read our full guide to Laugavegur Food Hall

17. Brauð & Co.

Cuisine: Artisan Bakery
Location: Frakkastígur, Reykjavík
Must-Try Dish: Warm Cinnamon Cardamom Rolls
About the Place: Located inside a colorful graffiti-covered building, this sourdough bakery is famous for warm, freshly pulled cinnamon and cardamom rolls.
Explore More: Read our full guide to Brauð & Co.

18. Sjávargrillið (Seafood Grill)

Cuisine: Contemporary Seafood & Game Grill
Location: Skólavörðustígur, Reykjavík
Must-Try Dish: Grilled Ocean Catfish & Salted Cod
About the Place: Founded by an award-winning master chef, this rustic-chic dining room specializes in charcoal-grilled seafood skewers, game, and shellfish.
Explore More: Read our full guide to Sjávargrillið

19. Vogafjós Farm Resort Restaurant

Cuisine: Farm-to-Table Dairy & Meats
Location: Lake Mývatn
Must-Try Dish: Geothermal Rye Bread with House-Smoked Trout
About the Place: A working cattle farm where guests can watch cows being milked through glass windows while dining on farm-fresh cheese, smoked trout, and lava-baked rye bread.
Explore More: Read our full guide to Vogafjós Farm Resort Restaurant

20. Old Iceland Restaurant

Cuisine: Traditional Icelandic Comfort Food
Location: Laugavegur, Reykjavík
Must-Try Dish: Slow-cooked Lamb Ribs with Wild Icelandic Herbs
About the Place: An intimate restaurant on Reykjavík’s main shopping street, celebrated for incorporating wild Icelandic herbs into traditional meat and fish dishes.
Explore More: Read our full guide to Old Iceland Restaurant

Featured Image

Icelandic Langoustine Seafood Dish