This wee hamlet sits in a stunning location, framed by a backdrop of rugged rhyolite peaks on one side and the spectacular Dyrfjöll mountains on the other; the hiking in the area is outstanding. There’s very little in the village itself (which is less commonly known as Bakkagerði), although driftwood sculptures, hidden elves and crying seabirds exude a magical charm. As a bonus, this is one of Iceland's most accessible places for up-close viewing of nesting puffins.
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