North Iceland is one of the country’s most underrated regions. While many visitors spend most of their time exploring the South Coast or Golden Circle, those who venture north are rewarded with dramatic fjords, colourful fishing villages, geothermal landscapes, whale watching, and quieter roads.
Whether you’re planning a complete Ring Road adventure or simply adding a few extra days to your itinerary, exploring North Iceland by rental car gives you the freedom to visit charming towns at your own pace.
Here’s our guide to some of the most beautiful towns in North Iceland and why each deserves a place on your itinerary.
Why Explore North Iceland by Car?
Unlike organised tours that follow fixed schedules, renting a car allows you to:
- Stop whenever you discover scenic viewpoints
- Explore hidden villages between major attractions
- Visit waterfalls, hot springs, and coastal viewpoints
- Travel at your own pace
- Stay overnight in smaller communities
Many of North Iceland’s highlights are spread across long stretches of coastline, making a rental car the easiest and most flexible way to explore.
Akureyri – The Capital of North Iceland
Akureyri is Iceland’s second-largest urban area and the perfect base for exploring the north. Sitting at the end of Eyjafjörður, Iceland’s longest fjord, the town combines colourful streets, mountain scenery, and excellent restaurants with easy access to some of the country’s most famous natural attractions.
Things to Do
- Visit Akureyri Botanical Garden
- Walk along the harbour
- Explore local cafés and restaurants
- Visit Akureyri Church
- Browse boutique shops
- Enjoy the public geothermal swimming pool
Akureyri also serves as an excellent starting point for day trips to:
- Lake Mývatn
- Goðafoss Waterfall
- Forest Lagoon
- Húsavík
- Dettifoss
Driving Time from Reykjavík
Approximately 5–6 hours via the Ring Road.
Húsavík – Iceland’s Whale Watching Capital
Located on Skjálfandi Bay, Húsavík is world-famous for whale watching. During summer, visitors regularly spot humpback whales, minke whales, white-beaked dolphins, and occasionally blue whales.
The town itself is charming, with colourful buildings, a picturesque harbour, and stunning coastal views.
Highlights
- Whale watching tours
- GeoSea Geothermal Sea Baths
- Húsavík Whale Museum
- Traditional wooden church
- Scenic harbour walks
If you’re travelling with children, Húsavík makes an excellent family-friendly stop.
Driving Time from Akureyri
Approximately 1 hour.
Siglufjörður – Iceland’s Most Charming Fishing Town
Surrounded by steep mountains and sitting at the end of a narrow fjord, Siglufjörður is often considered one of Iceland’s most picturesque towns.
Once the centre of Iceland’s herring industry, today it offers visitors colourful architecture, peaceful surroundings, and fascinating history.
Don’t Miss
- Herring Era Museum
- Harbour area
- Walking trails
- Local cafés
- Mountain views
Siglufjörður is especially beautiful during summer when wildflowers bloom along the fjord, while winter transforms it into one of Iceland’s premier ski destinations.
Driving Time from Akureyri
Around 1 hour 20 minutes.
Dalvík – Adventure on the Eyjafjörður Coast
Dalvík is a small fishing town known for outdoor activities and beautiful coastal scenery.
It offers a quieter alternative to Akureyri while still providing plenty to see and do.
Popular Activities
- Whale watching
- Sea angling
- Hiking
- Ferry to Grímsey Island (crossing the Arctic Circle)
- Local swimming pool
Dalvík is particularly popular with travellers looking to experience authentic Icelandic fishing communities.
Driving Time from Akureyri
Approximately 40 minutes.
Hauganes – A Hidden Gem
Just north of Akureyri lies the peaceful village of Hauganes.
Although small, it offers spectacular fjord views and several unique experiences.
Why Visit?
- Whale watching
- Harbour café
- Hot tubs overlooking the sea
- Quiet walking paths
- Black sand shoreline
It’s the perfect stop if you’re looking to escape the crowds.
Driving Time from Akureyri
About 30 minutes.
Ólafsfjörður – Mountains Meet the Sea
Connected to Siglufjörður via one of Iceland’s longest road tunnels, Ólafsfjörður is another beautiful coastal village surrounded by dramatic peaks.
Visitors come for the peaceful atmosphere, kayaking opportunities, hiking trails, and birdlife.
It also makes a fantastic photography stop thanks to the reflections often seen on Ólafsfjörður Lake.
Driving Time from Akureyri
Approximately 1 hour.
Grenivík – Gateway to the Arctic Coast
Grenivík sits on the eastern side of Eyjafjörður and offers magnificent views across the fjord.
The village remains relatively unknown to international visitors, making it ideal for travellers seeking quieter destinations.
Nearby you’ll find:
- Kaldbakur Mountain
- Coastal walking trails
- Excellent birdlife
- Scenic viewpoints
Driving Time from Akureyri
Around 40 minutes.
Best Time to Visit North Iceland
Summer (June–August)
Summer offers long daylight hours, mild temperatures, and excellent driving conditions. This is the best time for:
- Whale watching
- Hiking
- Road trips
- Camping
- Photography
The Midnight Sun also gives you extra hours to explore.
Autumn (September–October)
Autumn brings colourful landscapes, fewer visitors, and the first opportunities to see the Northern Lights.
Winter (November–March)
North Iceland becomes a snowy wonderland. Visitors can enjoy:
- Skiing
- Snow-covered fjords
- Northern Lights
- Ice-covered waterfalls
Roads are generally maintained year-round, but winter driving experience is recommended.
Spring (April–May)
Spring brings migrating birds, quieter roads, and waterfalls at their most powerful thanks to melting snow.
What Rental Car is Best for North Iceland?
The best vehicle depends on when you’re visiting.
Summer
A 2WD economy car is suitable if you’re staying on paved roads and following the Ring Road.
Winter
A 4×4 SUV is strongly recommended for added stability and confidence on snowy or icy roads.
If you plan to explore more remote areas or travel during changing weather conditions, a 4×4 offers additional peace of mind.
Suggested North Iceland Road Trip
Day 1
- Akureyri
- Forest Lagoon
- Goðafoss
Day 2
- Húsavík
- Whale watching
- GeoSea Baths
Day 3
- Lake Mývatn
- Dimmuborgir
- Hverir
- Mývatn Nature Baths
Day 4
- Siglufjörður
- Ólafsfjörður
- Dalvík
Day 5
- Hauganes
- Return to Akureyri
This itinerary allows you to experience both North Iceland’s famous attractions and its quieter coastal communities.
Driving Tips for North Iceland
Before setting off:
- Check road conditions at road.is
- Monitor weather forecasts at vedur.is
- Keep your headlights on at all times
- Allow extra time for scenic stops
- Fill up with fuel before driving longer rural stretches
- Never stop in the middle of the Ring Road to take photographs
If travelling in winter, always drive according to the conditions and be prepared for changing weather.
FAQ
- Is Akureyri worth visiting?
Absolutely. Akureyri offers beautiful scenery, excellent restaurants, cultural attractions, and easy access to many of North Iceland’s top sights.
- How many days should I spend in North Iceland?
A minimum of three days is recommended, while four to six days allows you to explore more towns and attractions at a relaxed pace.
- Can you drive around North Iceland in a 2WD car?
Yes, during summer, a 2WD vehicle is suitable for most travellers staying on paved roads. During winter, a 4×4 is recommended for improved stability and confidence.
- Which town is best for whale watching?
Húsavík is widely regarded as Iceland’s best whale watching destination.
- Is Siglufjörður worth the drive?
Yes. Its dramatic fjord setting, colourful harbour, fascinating history, and peaceful atmosphere make it one of North Iceland’s most rewarding destinations.
- Can I visit these towns during a Ring Road trip?
Yes. All of these towns can easily be included as part of a self-drive Ring Road itinerary.
Conclusion
North Iceland is filled with charming towns that offer a different side of the country—less crowded, equally beautiful, and full of unforgettable experiences. From the vibrant streets of Akureyri to the peaceful harbours of Siglufjörður, Húsavík, Hauganes, and Dalvík, every stop has its own unique character.
With a rental car from Dollar Iceland, you can explore these destinations at your own pace, discover hidden viewpoints, and enjoy the flexibility to create your own unforgettable North Iceland road trip. Whether you’re travelling in the bright days of summer or hoping to catch the Northern Lights in winter, the towns of North Iceland are well worth adding to your Iceland itinerary.