However much you strain to discover some underlying charm, Egilsstaðir (pronounced eyils-stather) isn’t a ravishing beauty. It’s the main regional transport hub and a centre for local commerce, so its services are quite good (including quality accommodation and dining options). It's growing fast, but in a hotchpotch fashion and without a proper town centre.
Egilsstaðir’s saving grace is its proximity to lovely Lagarfljót, Iceland’s third-largest lake. Since Saga times, tales have been told of a monster living in its depths. If you want to do some beastie-hunting, or explore the forest on the lake’s eastern bank, Egilsstaðir makes a good base.