Ólafsfjörður, is one of the two villages in Fjallabyggð municipality. The fjord and high surrounding mountains, together with a lake and estuary, form a magnificent setting.

Employment is mostly based on fishing or light industry, but plenty of recreation is also on hand for tourists and outdoor enthusiasts.

In the winter, they can choose between slalom and cross–country skiing, and perhaps try skating, fishing through the lake ice or zipping over the landscape on a snow scooter.

During summer, the mountains, lake, estuary and black beach are enchanting.

A range of hiking routes through valleys and mountains lead to superb panoramas, in the midst of peace and quiet. North of the tunnel going east to Eyjafjörður, the now–abandoned, awe–inspiring road around the Múlinn peninsula climbs to an altitude of 300 m. In fair weather, it provides a terrific view, and the best place to watch the midnight sun in Iceland. Note however that you cannot walk the whole way around the peninsula, since the road has started to collapse down the slope.

Ólafsfjörður has Iceland’s only ski jump, as well as a splendid natural history museum displaying one of the country’s most diverse bird collections, while sports clubs and other local organisations put on numerous events.

The monument in memory of drowned seamen, which was erected by the church in 1940, was the first of its kind in Iceland.