Reykjavík

Old Reykjavík is the capital’s, and the country’s, historic heart. Here you can do what the locals do: wander streets flanked by imposing 19th-century buildings, stroll beside duck-dotted Tjörnin lake, drop into bars, relax in coffee houses and hunt out finds in design shops. Museums and galleries span photography to contemporary art, while the architecture ranges from the oldest streets around Austurvöllur to the postmodern lines of the Ráðhús (City Hall) and the 21st-century, glass-and-stone annex of the historic Alþingi (parliament).

Iceland’s National Museum gathers together the country’s most priceless artefacts, creating a trail of clues to life at Settlement and beyond. Creative, engaging displays see you perusing the finds and gaining insights into the hardy hearts of Icelanders. Stand by for everything from swords, figurines of Norse gods and depictions of dragons to touchingly prosaic items from everyday life: wooden dolls and board game pieces carved from cod ear bones. The free guided tours ensure the stories behind the artefacts spring vividly to life.

Reykjavík's rejuvenation is tangible in the Old Harbour and neighbouring Grandi area, with the last few years seeing massive change and investment. The result? One of the city’s most intriguing tourist hot spots. It’s a place to tour innovative art galleries and museums, hop on a whale- or puffin-watching boat, tour a chocolate factory, sip a craft beer in a microbrewery and feast on fish landed just yards away. And drink in wide views of the city and snow-dusted Mt Esja.

The capital's iconic church crowns a rise in the city centre, visible for miles around. This is photo opportunity central, with the distinctive sweep of the modernist steeple and the swashbuckling statue of the Viking Leifur Eiríksson forming the backdrop to countless selfies. The most memorable moments though come from listening to one of the regular choir concerts and taking the elevator up the 74.5m-high tower to take in the broad sweep of the city, ocean and mountains beyond.

Over three stunning sites, a feast for the senses, the Reykjavík Art Museum showcases the best of Icelandic art. The curation is superb and draws together the vast steel and concrete space at downtown Hafnarhús, which focuses on contemporary art; the rotating displays of modern art (especially works by former fisherman Jóhannes Kjarval) at Kjarvalsstaðir, and the array of playful sculptures by Ásmundur Sveinsson at the tranquil Ásmundarsafn.

The modern era meets Viking remains at this exhibition centred around Reykjavík's oldest ruins. The atmospherically lit, subterranean displays feature the oval foundation walls of a 10th-century Viking longhouse. Artefacts from Reykjavík's first days sit all around – expect to see items ranging from great auk bones to an inscribed spindle whorl – and imaginative displays raise interest levels still further – audio-visual re-creations of the lives of the early settlers, plus a high-tech fly-through of the eras represented in the construction.

Both functional and beautiful, the capital’s twinkling concert hall sitting on the water's edge is a testament to Icelandic innovation and Nordic design. It's facade is covered in complex layers of glass panels that appear to shimmer in the light. One of the designers was renowned Danish-Icelandic artist Ólafur Elíasson. Inside there are boutiques, a cafe and a top-notch restaurant, and of course concert halls that host the Iceland Symphony and the Icelandic Opera. If you're lucky you might even catch performers rehearsing during the excellent guided tours.

High-octane, high-spirited and highly alcoholic, Reykjavík’s famous djammið mass pub crawl sees waves of revellers flow from bar to pub and to club. Eye-wateringly expensive alcohol means most locals start the party at home (after a visit to state-run liquor store Vínbúðin) before hitting the town around midnight. Next comes a cruise from bar to bar, striking up conversations with strangers en route, with the partying only ending with a trip to the hot dog stand around 4am or 5am.

Reykjavík loves its coffee culture. All over the capital you'll find quirky cafes crowded with cool cats sipping drinks brewed from the caffeinated beans. The surroundings are normally effortlessly hip, the people-watching is prime and the pastries often come from the city's best bakeries. In-vogue venues change but highlights of the scene include super-cool Reykjavík Roasters, retro Kaffi Mokka, where the décor dates from the 1950s, and hipster haven Kaffi Vínyl. Many cafes morph into bars as the evening wears on.

Laugardalur is where Reykjavíkers come to play. Perhaps the biggest draw of this park some 4km east of the centre is the vast Laugardalslaug swimming pool complex, which boasts indoor and outdoor pools, a strip of alfresco hot-pots and a swirling waterslide. The district is also home to the seals, foxes and farm animals of the Reykjavík Zoo, the colourful Reykjavík Botanic Gardens, where you'll find the enchanting Cafe Flora tucked into a greenhouse, and the fun, interactive exhibits of the Reykjavík Art Museum – Ásmundarsafn.