Open Travel Guide
Restaurants in Capital Region

Best Restaurants in Capital Region 2026

Discover authentic local cuisine, top restaurants, and the best dining experiences in Capital Region.

Capital Region has 40+ restaurants and places to eat covered in this guide, led by Dill, Nostra and Grillmarkaðurinn (The Grill Market). Each entry below includes the practical details — what it costs, when to go, and how to plan around it.

The Capital Region (Höfuðborgarsvæðið) of Iceland is the country's most populous and vibrant area, centered around Reykjavik, the world's northernmost capital city. It encompasses seven municipalities including Reykjavik, Kópavogur, Hafnarfjörður, Garðabær, Mosfellsbær, Seltjarnarnes, and Kjósarhreppur, together forming Iceland's cultural, political, and economic heart. The region blends dramatic volcanic landscapes, steaming geothermal pools, world-class museums, and a legendary nightlife scene unlike anywhere else on earth.

Reykjavik's food scene has undergone a remarkable transformation, evolving from simple fish and lamb dishes to one of Europe's most exciting culinary destinations. The city's cuisine is rooted in pristine Icelandic ingredients — wild-caught Arctic fish, free-range lamb that grazes on Icelandic herbs, sustainably harvested langoustine, locally grown root vegetables, and dairy products (especially skyr) that have sustained Icelanders for centuries. Modern Reykjavik restaurants celebrate these ingredients with Nordic minimalism and occasional global influence, while traditional eateries and street food stalls preserve the honest flavors of Iceland's fishing and farming heritage.

Must-try dishes

Iconic dishes that define Capital Region.

Must try

Hot dog (pylsa)

Made with lamb and pork, served with crispy onion, raw onion, ketchup, mustard, and sweet remoulade

Where to try: Bæjarins Beztu Pylsur, Tryggvagata

Price: $5

Must try

Lobster soup (humarsúpa)

Rich, creamy bisque made with Icelandic langoustine and served with rye bread

Where to try: Sægreifinn (Sea Baron), Old Harbour

Price: $18

Must try

Skyr

Traditional Icelandic dairy product similar to thick yogurt, naturally high in protein and low in fat

Where to try: Supermarkets, Café Loki, most breakfast spots

Price: $4-8

Must try

Langoustine (humar)

Iceland's prized small lobster, best eaten simply grilled with garlic butter

Where to try: Messinn, Kopar, Fiskmarkaðurinn

Price: $30-45

Must try

Plokkfiskur

Traditional Icelandic fish stew of poached fish and potatoes mashed together — humble and wonderful

Where to try: Icelandic Street Food, Café Loki, Kaffivagninn

Price: $12-18

Must try

Rye bread (rúgbrauð)

Dense, sweet geothermally baked dark bread — buy a loaf at Sandholt or Bónus supermarket

Where to try: Sandholt Bakery, Café Loki

Price: $3-4

Must try

Hákarl (fermented shark)

Ammonia-cured Greenlandic shark — an acquired taste but a cultural rite of passage

Where to try: Café Loki, Kolaportið market

Price: $8-12

Must try

Skyr ice cream (skyrís)

Ice cream made with skyr — lighter and tangier than regular ice cream with unique Icelandic berry flavors

Where to try: Valdís Ice Cream, Hlemmur Mathöll

Price: $6

Top restaurants

Handpicked picks for the best dining experiences.

New Nordic

Dill

$$$$$4.9/5

Iceland's only Michelin-starred restaurant offers an extraordinary 7-course tasting menu that celebrates Icelandic ingredients at their finest. Chef Gunnar Karl Gíslason's menu changes with the seasons, featuring foraged herbs, wild game, sustainably caught fish, and skyr in unexpected forms.

Known for: Michelin-starred New Nordic cuisine with exclusively Icelandic ingredients

Hverfisgata 12, 101 Reykjavik

New Nordic

Nostra

$$$$4.8/5

An acclaimed fine dining restaurant with a strong focus on local and sustainable Icelandic produce, Nostra serves a rotating menu that highlights seasonal ingredients with modern Nordic technique. The wine list is exceptional and the warm, minimalist dining room creates an intimate atmosphere.

Known for: Seasonal Nordic fine dining with local Icelandic produce

Laugavegur 59, 101 Reykjavik

Icelandic Grill

Grillmarkaðurinn (The Grill Market)

$$$$4.7/5

Market-to-table Icelandic cooking at its finest, where prime cuts of Icelandic lamb, local beef, and the freshest seafood are grilled over volcanic stones. The dramatic basement dining room with its exposed lava walls creates an unforgettable atmosphere that matches the bold, beautiful food.

Known for: Premium Icelandic meats and seafood grilled on volcanic stone

Lækjargata 2a, 101 Reykjavik

Icelandic Seafood / Asian Fusion

Fiskmarkaðurinn (The Fish Market)

$$$$4.7/5

A creative and vibrant restaurant that fuses Icelandic seafood with Asian cooking techniques and flavors. The omakase sushi bar and fresh catch specials are outstanding, and the lively basement atmosphere under the Old Harbour makes it one of Reykjavik's most enjoyable dining experiences.

Known for: Icelandic seafood with Asian fusion techniques

Aðalstræti 12, 101 Reykjavik

Traditional Icelandic

Matur og Drykkur

$$$$4.7/5

Drawing inspiration from an old Icelandic cookbook, this celebrated restaurant transforms traditional Icelandic dishes into elegant modern interpretations. Dishes like cod heads in brown butter, fermented skate, and sheep's head soup are presented with artistry, honoring Iceland's culinary heritage.

Known for: Modern interpretation of traditional Icelandic recipes from the 1858 cookbook

Grandagarður 2, 101 Reykjavik

Icelandic Seafood

Messinn

$$$4.7/5

Famous for its fresh Icelandic fish served piping hot in cast-iron skillets, Messinn is consistently rated among Reykjavik's best restaurants. The simple, honest cooking lets outstanding locally caught fish — cod, haddock, and salmon — shine with seasonal vegetables and house-made sauces.

Known for: Fresh Icelandic fish in cast iron skillets

Lækjargata 6b, 101 Reykjavik

Icelandic Seafood

Sægreifinn (The Sea Baron)

$$4.6/5

A Reykjavik institution since 1994, this quirky harborside shack serves the most famous lobster soup in Iceland along with skewers of whale, langoustine, and fresh fish grilled to order. Simple, delicious, and utterly authentic, it's an unmissable experience in the Old Harbour.

Known for: Famous lobster soup and grilled seafood skewers

Geirsgata 8, 101 Reykjavik

French-Icelandic Bistro

Snaps Bistro

$$$4.6/5

A warm and convivial bistro with a French-influenced menu using Icelandic produce, Snaps is one of Reykjavik's most beloved neighborhood restaurants. The lively atmosphere, excellent wine list, and approachable prices make it a local favorite for weekday lunches and romantic dinners.

Known for: French bistro classics with Icelandic twist

Þórsgata 1, 101 Reykjavik

Restaurants by cuisine

Browse picks grouped by cuisine type.

Seafood

Fiskmarkaðurinn (The Fish Market)

$$$$

Messinn

$$$

Sægreifinn (The Sea Baron)

$$

Kopar Restaurant

$$$

Reykjavik Fish Restaurant

$$$

Icelandic

Bergsson Mathús

$$

Geysir Bistro & Bar

$$

Matarkjallarinn (The Food Cellar)

$$$$

Traditional Icelandic

Matur og Drykkur

$$$$

Café Loki

$$

Gamla Bærinn (Old Farm)

$$

Café

Stofan Café

$

Kaffihús Vesturbæjar

$

Coffee

Café Haiti

$

Mokka Kaffi

$

European

Ostabúðin

$$

Ostabúðin Cheese & Wine Bar

$$$

Icelandic Traditional

Icelandic Street Food

$

Gamla Hafnarkráin (Old Harbor Tavern)

$$

New Nordic

Dill

$$$$$

Nostra

$$$$

Thai

Noodle Station

$

Thai Koon

$

Artisan Bakery

Brauð & Co

$

Burgers

Hamborgarabúlla Tómasar (Tommi's Burger Joint)

$

French

Snaps Bistro

$$$

Ice Cream

Valdís Ice Cream

$

Icelandic Bakery

Sandholt Bakery

$

Icelandic Contemporary

Petersen Svítan

$$$$

Icelandic Diner

Kaffivagninn

$

Icelandic Grill

Grillmarkaðurinn (The Grill Market)

$$$$

Icelandic Street Food

Bæjarins Beztu Pylsur

$

International

Laundromat Café

$$

Italian

Hornið

$$$

Mexican

Pablo Discobar

$$

Middle Eastern

Kebabinn

$

Multiple

Hlemmur Mathöll (Food Hall)

$$

New Icelandic

Skál! Kitchen & Bar

$$$

Specialty Coffee

Reykjavik Roasters

$

Vegetarian

Gló

$$

Street food

Local flavours at affordable prices.

Street food

Icelandic hot dog (pylsa)

Lamb and pork hot dog with all the toppings from Bæjarins Beztu — Iceland's most iconic food

Find it at: Tryggvagata 1, near Harpa Concert Hall

Street food

Lobster soup to go

Cup of rich langoustine bisque from Sægreifinn — perfect for eating while walking the harbor

Find it at: Geirsgata 8, Old Harbour

Street food

Skyr soft serve

Creamy skyr-based soft serve ice cream from various kiosks — low fat, high protein, delicious

Find it at: Hlemmur Mathöll and summer kiosks

Street food

Lamb sandwich at market

Slow-cooked lamb on rye bread from food market vendors

Find it at: Kolaportið weekend market

Street food

Fish and chips (Icelandic style)

Beer-battered fresh cod or haddock with Icelandic remoulade from harbor vendors

Find it at: Old Harbour food trucks

Food markets

Where locals shop and graze.

Kolaportið Flea Market

Weekend flea market with food stalls selling traditional Icelandic items including hákarl, dried fish, and homemade preserves

Hours: Sat-Sun 11AM-5PM

Hlemmur Mathöll Food Hall

Permanent food hall with multiple vendors in a converted bus terminal — the best casual food diversity in Reykjavik

Hours: Mon-Wed 8AM-11PM; Thu-Sat 8AM-1AM; Sun 8AM-11PM

Farmers Market (Bændabúðin)

Seasonal farmers market in Laugardalur with local producers selling fresh vegetables, dairy, and craft food products

Hours: Saturdays 10AM-2PM (May-September)

Dining etiquette & tips

Navigate the local food scene confidently.

Tip

Reykjavik is expensive by European standards — budget $15-20 for a basic sit-down meal

Tip

Lunch specials at most restaurants offer 2-3 courses for $18-28 — far better value than dinner

Tip

Supermarkets (Bónus, Krónan, Nettó) enable self-catering and can cut food costs by 60%

Tip

Many restaurants have limited hours — check in advance and book for dinner, especially weekends

Tip

Tipping is not mandatory but 10% is appreciated at restaurants for good service

Tip

The local Bónus chain is the cheapest supermarket — recognizable by its pink pig logo

Tip

Most restaurants are licensed to serve alcohol; Iceland's wine and beer prices are high but bars close at 1AM weeknights, 4AM weekends

Dietary info
Vegetarian
Vegetarian options available at most restaurants; vegan options growing but limited at traditional spots
Halal
Limited dedicated halal restaurants; kebab shops and some Middle Eastern restaurants serve halal meat
Gluten free
Widely catered for; most restaurants can accommodate on request; supermarkets stock gluten-free products

Food budget guide

What to expect at different price points.

Level Price Description
Budget $12-20 per meal Hot dogs, noodle soups, food hall vendors, supermarket meals, and budget eateries
Mid-range $30-50 per meal Casual restaurant main course with one drink; seafood at mid-range venues
Upscale $80-200+ per meal Fine dining restaurants including Dill, Nostra, Grillmarkaðurinn — tasting menus and wine pairing