Where to Eat in Reykjavik, Iceland: Best Restaurants

Reykjavik is home to some of the best restaurants in Iceland. And because one of our favorite things to do while traveling is to eat, we managed to squeeze plenty of dining experiences into our short stay in the capital city. If you’re wondering where to eat in Reykjavik, Iceland, we’ve got you covered — from fancy restaurants to cheap street stands.

Best Overall: Grill Market

At Grill Market (Grillmarkadurinn), which features local food and works with local farmers, we had a delicious meal of fried vegetables, lamb, fish, wine, and two fantastic desserts. It was expensive, but absolutely worth it.

Delicious desserts at Grill Market in Reykjavik

Delicious desserts at Grill Market in Reykjavik

Best Seafood: Fish Market

If you want to sample amazing seafood, don’t miss Fish Market (Fishmarkadurinn). We skipped it because of a shellfish allergy, but our friends who went loved it. You’ll find fresh lobster, crab, shrimp, and even puffin on the menu.

Best Bakery: Bakari Sandholt

Looking for a good cup of coffee or a sweet treat? Stop by Bakari Sandholt on Laugavegi 36, one of the main streets in Reykjavik. We had the most delicious chocolate pastry there. (Note the website is in Icelandic, so you’ll need to translate it to read the menu.)

Best Take Out: Austurlanda Hradlestin

If you’re in the mood for Indian, check out Austurlanda Hradlestin (on Hverfisgotu 64a). We got a ton of fantastic Indian food for a reasonable price — reasonable by Icelandic standards, anyway. You can dine in or get take out.

Best Hot Dog: Baejarins Beztu Pylsur

For a true Icelandic experience, don’t miss the best hot dog in the world at Baejarins Beztu Pylsur. Before you turn up your nose at that suggestion, know that hot dogs in Iceland are far better than American hot dogs. They’re made with real meat — usually a combination of lamb, pork, and beef — rather than the processed mystery meat you’ll find in hot dogs in the U.S. They are delicious, and cheap.


Reykjavik is home to some of the best hot dogs in the world.

Although dining out in Iceland is expensive, it’s worth the splurge. There are some fantastic restaurants in Reykjavik, so take advantage of them — especially if your Icelandic travels will take you outside of the city. Once you leave Reykjavik, the pickings are slim for eating out. Whether you’re in the mood for something fancy, take out, or a cheap meal, there are great options in Reykjavik, Iceland.

Have you been to Reykjavik? What was your favorite eating experience?