Best Restaurants in Iceland 2025
Explore the culinary scene of Iceland - from local favorites to fine dining.
Iceland is a land of dramatic contrasts where fire meets ice, featuring active volcanoes, massive glaciers, geothermal hot springs, and the mesmerizing Northern Lights. This Nordic island nation offers breathtaking natural wonders from thundering waterfalls to black sand beaches, making it one of the world's most unique travel destinations.
Icelandic cuisine is rooted in its harsh environment – centuries of survival dictated preservation techniques like fermentation, smoking, and wind-drying that now define traditional food. Modern Iceland has developed a thriving New Nordic dining scene championed by Dill (Iceland's only Michelin-starred restaurant) that celebrates local ingredients: lamb from free-roaming highland flocks, Atlantic cod and langoustine, Arctic char from crystal-clear rivers, wild herbs, and skyr, the ancient dairy product eaten daily for 1,000 years.
Must-Try Dishes
These iconic dishes define the culinary identity of Iceland.
Plokkfiskur (Fish Stew)
Iceland's national comfort food: flaked haddock or cod mixed with béchamel sauce, potatoes, and onions, served with rye bread. A simple, warming dish that has sustained Icelanders for generations.
Kjötsúpa (Lamb Soup)
Hearty soup made from Icelandic lamb with root vegetables including turnip, carrot, and potato. The lamb in Iceland is exceptional – free-range animals that spend summers eating wild herbs in the highlands.
Langoustine (Humar)
Iceland's finest seafood luxury – sweet, tender langoustine from the cold Atlantic waters. The town of Höfn on the east coast is famous for its annual Lobster Festival. Best eaten simply grilled with garlic butter.
Skyr
A thick, protein-rich dairy product that resembles Greek yogurt but is technically a fresh cheese made in Iceland for over 1,000 years. Eaten for breakfast with berries or as a dessert. High protein, low fat.
Harðfiskur (Dried Fish)
Wind-dried haddock or cod that is torn apart and eaten as a snack with Icelandic butter. The traditional Icelandic snack for centuries, high in protein with an intense umami flavour.
Hákarl (Fermented Shark)
Fermented Greenlandic shark aged for 4-6 months underground then hung to dry for several more months. Extremely pungent with ammonia aroma – Iceland's most notorious traditional food. Order it with Brennivín.
Skyr Cheesecake
Modern Icelandic dessert using native skyr as the base for a light, tangy cheesecake topped with Icelandic crowberries or bilberries. A delicious contemporary interpretation of a traditional ingredient.
Complete Food Guide
100+ restaurants, local recipes, and dining recommendations for Iceland.
Top Restaurants
Our handpicked recommendations for the best dining experiences.
Dill Restaurant
Iceland's first Michelin-starred restaurant offering innovative tasting menus featuring seasonal Icelandic ingredients. Chef Gunnar Karl creates sustainable dishes highlighting unique Nordic flavors with impeccable presentation. Intimate setting with exceptional wine pairings.
Snaps Bistro
Cozy French-style bistro with Icelandic twist serving classic dishes in casual atmosphere. Popular weekend brunch spot with excellent traditional French fare. Intimate setting perfect for date nights or casual dining.
Bæjarins Beztu Pylsur
Iconic hot dog stand serving Reykjavik since 1937. Famous lamb-based hot dogs with unique remoulade sauce. Order 'eina með öllu' (one with everything) for the full experience. A must-visit Icelandic institution.
Hlemmur Mathöll Food Hall
First food hall in Reykjavik featuring multiple vendors under one roof. Options include Flatey Pizza, tacos at Fuego, Asian cuisine, and experimental bar Skál. Hip atmosphere in converted bus terminal building.
Reykjavik Roasters
Specialty coffee roastery with multiple locations serving excellent single-origin beans. Cozy atmosphere perfect for working or relaxing. Also serves pastries and light breakfast items. WiFi available.
Grillmarkaðurinn (Grill Market)
Upscale restaurant showcasing Iceland's finest ingredients cooked over open flames. Features exotic meats including puffin, reindeer, and whale alongside exceptional seafood and vegetables. Dramatic interior with lava stone and wood creating unique atmosphere.
Sægreifinn (Sea Baron)
Legendary harbor shack famous for grilled lobster soup and seafood skewers. No-frills atmosphere with fresh catches grilled to perfection. Cash only. A Reykjavik institution beloved by locals and tourists alike.
Icelandic Street Food
Cozy spot serving traditional Icelandic comfort food in casual setting. Famous for hearty lamb soup served with homemade bread. Great value with authentic flavors and friendly atmosphere. Perfect lunch stop.
Restaurants by Cuisine
Find restaurants that match your taste preferences.
New Nordic Cuisine
Dill Restaurant
French-Icelandic Cuisine
Snaps Bistro
Hot Dogs Cuisine
Bæjarins Beztu Pylsur
Various Cuisine
Hlemmur Mathöll Food Hall
Hafnartorg Gallery Food Hall
Grandi Mathöll Food Hall
Coffee & Pastries Cuisine
Reykjavik Roasters
Icelandic Fusion Cuisine
Grillmarkaðurinn (Grill Market)
Street Food & Markets
The best local flavors at affordable prices.
Icelandic Hot Dog (Pylsa)
The iconic Bæjarins Beztu Pylsur hot dog – made from a blend of lamb, pork, and beef with sweet remoulade, brown mustard, ketchup, raw onion, and crispy fried onion. Order 'eina með öllu' (one with everything). Bill Clinton famously ate one here in 2004.
Lobster Soup (Humarsúpa)
Rich, creamy bisque-style soup made from Icelandic langoustine served with fresh bread. The Sea Baron (Sægreifinn) serves the most famous version from a basic harbour shack – a legendary cheap luxury.
Flatey Pizza
Neapolitan-style thin-crust pizza made with quality Icelandic ingredients, available by the slice. Started as a street food concept and now has multiple locations including Hlemmur Mathöll food hall.
Rye Bread (Rúgbrauð)
Dense, sweet Icelandic rye bread traditionally baked in geothermal hot springs (known as 'thunder bread' or 'hot spring bread'). Eaten with butter and smoked lamb or gravlax at open-face sandwiches.
Food Markets
Kolaportið Flea Market
Reykjavik's only flea market and the best place to taste traditional Icelandic foods including hákarl, harðfiskur, rúgbrauð, and smoked lamb. Housed in a warehouse by the harbour, with vendors selling everything from vintage records to homemade jams.
Hlemmur Mathöll Food Hall
Reykjavik's first food hall in a converted bus terminal, with 8 vendors including Flatey Pizza, Skál craft beer bar, Mexican street food, and Asian fusion. Hip atmosphere with communal seating and excellent quality across all stalls.
Grandi Mathöll Food Hall
Harbour-side food hall in a former fish processing factory at the creative Grandi district. Fresh seafood, traditional Icelandic fish soup, sushi, and international options with waterfront views through large industrial windows.
Dining Etiquette & Tips
Navigate the local food scene like a pro.
Lunch is the best value in Iceland – many upscale restaurants offer set lunch menus for $25-40 that would cost twice as much at dinner.
Book dinner reservations in advance for popular restaurants – Dill requires booking weeks ahead, and Grillmarkaðurinn and Fish Company fill up quickly in summer.
Icelandic lamb is some of the best in the world – always order it when it appears on the menu. The animals spend summers free-ranging in the highlands.
Tap water in Iceland is among the cleanest in the world and is served as standard in restaurants – never pay for bottled water.
Tipping is not expected or customary – service is included in prices and Icelandic service staff do not work for tips.
Food halls (Hlemmur and Grandi Mathöll) are the best value for a proper sit-down meal with multiple options to suit the whole group.
Food Budget Guide
What to expect at different price points.
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