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Where to Eat in Reykjavik: Best Restaurants, Food Halls and Local Favorites for Every Budget

2026-07-315 min readcheaphotels
Bowl of Icelandic lamb soup with rye bread on a wooden table Bowl of Icelandic lamb soup with rye bread on a wooden table

From harbourside seafood shacks to innovative Nordic fine dining, Reykjavik's food scene delivers unforgettable flavours across every price point—here's where to eat during your Icelandic adventure.

Classic Icelandic Cuisine: Traditional Restaurants Worth Seeking Out

Reykjavik's traditional restaurants showcase Iceland's unique culinary heritage, from fermented shark to tender lamb slow-cooked with wild herbs. Restaurants like Íslenski Barinn on Ingólfsstræti serve classic dishes including plokkfiskur (mashed fish stew), hákarl (fermented shark for the adventurous), and succulent Icelandic lamb, all in a cosy setting that feels authentically local. The Fish Company on Vesturgata combines traditional Icelandic ingredients with global techniques, offering tasting menus that highlight the country's exceptional seafood and game.

For a more casual traditional experience, head to Sægreifinn (The Sea Baron) by the old harbour, a no-frills spot famous for its lobster soup and grilled fish skewers served straight from the grill. The atmosphere is wonderfully unpretentious, with communal seating and walls covered in maritime memorabilia. Booking a hotel near the harbour area puts you within walking distance of these traditional spots and the morning fish market, where you can watch Reykjavik's food culture in action before your breakfast.

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