Seyðisfjörður: East Iceland's Rainbow Street Town

Seyðisfjörður is a small town in East Iceland and the country’s only international car ferry port, known for its rainbow-painted street leading to the landmark blue church.

About a 30-minute drive from Egilsstaðir, this town is surrounded by steep mountains at the end of a long fjord. Century-old timber trading houses line the harbor, where the Norröna ferry connects Iceland with Denmark and the Faroe Islands. Skaftfell Center for Visual Art, together with the LungA Art Festival that ran here from 2000 to 2024, made art an important part of life in this historic Eastfjords town.

A trip to Seyðisfjörður takes some planning because Fjarðarheiði mountain pass separates the town from the rest of East Iceland.

Route 93 over the Fjarðarheiði mountain pass is the only land route to Seyðisfjörður. From the town of Egilsstaðir, the 27 km (17 mi) drive takes 30 minutes. At its highest point, the pass reaches roughly 600 m (2,000 ft) above sea level. Winter weather can make driving unsafe and force temporary closures, so confirm the latest road conditions before setting out.

The drive from Reykjavík takes 8 to 9 hours via the Ring Road. Traveling clockwise through Borgarnes and North Iceland is slightly faster than following the counterclockwise route along the South Coast. Both routes eventually lead to Egilsstaðir and the Eastfjords.

The Norröna ferry, operated by Smyril Line, connects mainland Europe with Seyðisfjörður, sailing from Hirtshals, Denmark, via Tórshavn, the capital of the Faroe Islands. You can bring your car or camper on board, making it easy to continue your journey through Iceland in your own vehicle once the ferry reaches port. Departure times change by the season, so confirm the current Norröna sailing schedule before booking.

You can also fly domestically from Reykjavík to Egilsstaðir, the nearest airport to Seyðisfjörður. From there, continue by car on Route 93 or look up the current public bus timetable.

The Blue Church, Rainbow Street, Tvísöngur, Skaftfell Center for Visual Art, and the harbor are among Seyðisfjörður’s main attractions. Most are only a short walk apart, so you can see much of the town without a car.

Rainbow Street, known locally as Regnbogagatan, follows Norðurgata toward Bláa kirkjan, the Blue Church. Residents first painted it for Seyðisfjörður’s Pride celebration in 2016, creating one of the town’s signature landmarks. The community repaints the stripes each year to mark the beginning of summer, and visitors are welcome to pick up a brush and join in.

The church moved to its current location in 1920 and hosts the Blue Church Summer Concert Series, founded in 1998. Concerts take place on Wednesday evenings in July and early August.

Tvísöngur, designed by German sculptor Lukas Kühne, is a sound installation reached by a 15- to 20-minute walk from town along a gravel road. Opened in September 2012, the installation consists of five interconnected concrete domes measuring 2 to 4 m (7 to 13 ft) high. Each dome resonates at a different pitch in Icelandic five-tone harmony. Step inside and try singing or speaking to hear how the sound changes from one chamber to the next.

Skaftfell Center for Visual Art has also been part of Seyðisfjörður’s cultural life since 1998. Located at Austurvegur 42, the center is housed in a timber building dating to 1907. The program includes exhibitions and artist residencies, while a bistro occupies the first floor. Admission is free, though visitors can leave a donation.

Gufufoss is a 27 m (89 ft) waterfall around 8 km (5 mi) from Seyðisfjörður along Route 93. The drive from the harbor takes roughly 10 minutes, with a short path leading to the base of the falls. Gufufoss makes an easy stop as you enter or leave town. On a longer trip, continue south from Egilsstaðir to see more East Iceland waterfalls such as Hengifoss.

For a less demanding hike, take the Vestdalur trail along the river and into the valley. The path up Mount Bjólfur climbs above the harbor, with views of the town and fjord along the way. Experienced hikers can attempt the Seven Peaks route, which includes Bjólfur, Snjófjall, and Strandartindur. The route is long and poorly marked, so it’s best attempted from June through September.

Sundhöll Seyðisfjarðar is a small municipal swimming pool with a 12.5-by-7 m (41-by-23 ft) indoor pool, an outdoor hot tub, a cold tub, and a sauna. Adult admission costs 1,220 ISK ($10 / €9). Opening hours vary by season, and these prices are as of September 2026.

SS El Grillo was a British oil tanker sunk in the fjord during a German air raid in 1944. The wreck remains part of Seyðisfjörður’s Second World War history, while a local beer named after the ship keeps its story alive around town. 

Built just outside town in 1913, Fjarðarsel was Iceland’s first alternating-current power plant and remains the country’s oldest continuously operating hydroelectric station.

Seyðisfjörður is small enough to cover on foot, which is particularly useful if you arrive by ferry or cruise ship without a car.

A One-Day Plan

• Start the morning with a walk along Rainbow Street to the Blue Church, then continue to Skaftfell.
• Choose a short walk up to Tvísöngur or to Búðarárfoss, a waterfall above town with views back over Seyðisfjörður. Part of the Búðarárfoss path is still damaged, so check conditions locally first. 
• Spend the afternoon on Fossastígur, an easy riverside trail that begins in the town center. For a longer outing, walk about an hour to the Vestdalur trailhead and follow the valley toward Vestdalsvatn lake.
• Return to the town center for dinner.

Kaffi Lára (El Grillo Bar) serves burgers and local fish near the harbor. Bistro Skaftfell serves pizza and fish and chips inside the Skaftfell art center. For Icelandic specialties, Hotel Aldan puts reindeer and lamb on the dinner menu and generally opens from May through October, although dates and hours vary by season. Norð Austur specializes in sushi and opens for the summer season.

Hotel Aldan has rooms in several restored buildings around town, while the Post-Hostel is in the old post office near the harbor. You’ll also find a small selection of guesthouses and apartments. 

The municipal campsite near the town center is open from April 1 through October 31 and has showers, laundry machines, cooking facilities, and a seating area. A single adult stay costs 2,500 ISK ($21 / €18), and children 15 and younger stay free. The prices are as of September 2026.

A winter visit to Seyðisfjörður works best when you have room to adjust your plans. Snow covers the colorful rooftops, while the short daylight hours give the town a distinctly wintry atmosphere. Those same conditions can disrupt travel over Fjarðarheiði and occasionally close the road temporarily.

Stafdalur Ski Area is around 8 km (5 mi) from Seyðisfjörður along Route 93 toward Egilsstaðir. The lifts and slopes open when snow and weather conditions allow. On clear nights, the dark mountains ringing the fjord create promising conditions for watching the Northern Lights.

In December 2020, after days of record rainfall, Seyðisfjörður was hit by Iceland’s largest modern landslide to damage an inhabited area. The entire town was evacuated during the emergency. Fortunately, no one was killed. However, more than 10 buildings were destroyed, including several homes.

The main building of the Technical Museum of East Iceland was largely destroyed in the landslide. The museum is now open in the surviving Old Mechanical Shop, which operates seasonally and accepts winter visits by arrangement. Visitors arriving today will find rebuilt streets, stronger landslide defenses, and a town that has returned to everyday life.

Seyðisfjörður appears in The Secret Life of Walter Mitty (2013), with the longboard scene filmed on Route 93 above the fjord. After riding down the road, Walter reaches the town and walks past Hotel Aldan with his longboard in hand. 

Trapped (Ófærð) also features Seyðisfjörður as one of several Icelandic locations used to portray the series’ unnamed town. The footage shows the harbor, the Norröna ferry, and the mountains surrounding the fjord.