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Writer's pictureEinar Páll Svavarsson

Eyrarbakki small and charming village on the south shore


Old houses in Eyrarbakki village
Old houses in Eyrarbakki village

In past centuries, many towns and villages on the south shore of Iceland struggled to grow due to the challenge of building a harbor or even a small dock on the sandy shoreline. Despite having access to fertile fishing grounds, transporting the catch to town was always problematic. However, attempts were made to build a harbor in the 16th century, and Eyrarbakki became a part of the Danish-Icelandic Trade Monopoly, importing goods from Denmark. This led to the village becoming an important trading center, which continued until the early 20th century.


Eyrarbakki is in the South on the map of Iceland
Eyrarbakki is in the South on the map of Iceland

Eyrarbakki was once the largest and busiest town in Iceland


Eyrarbakki, a historic town in Iceland, holds a significant place in the country's past as it was once the largest and most bustling settlement, playing a crucial role as a major trading hub along the south coast towards Höfn. The town's prominence in commerce and trade was evident, attracting merchants and traders from far and wide. Despite its strategic location and economic importance, Eyrarbakki faced challenges that hindered its growth and development. One such obstacle was the absence of suitable conditions for a thriving harbor, limiting its potential for maritime activities and trade expansion. This geographical limitation posed a barrier to the town's ability to fully capitalize on its commercial opportunities.


Moreover, the late 19th-century construction of a bridge over the river Ölfusá had a profound impact on Eyrarbakki's trajectory. The bridge not only altered the town's landscape but also shifted the dynamics of transportation and connectivity in the region. As a result, Eyrarbakki's significance as a trading center underwent a transformation, leading to changes in its economic vitality and overall standing. The town had to adapt to these changing circumstances, reevaluating its role in the evolving trade networks and economic landscape of Iceland.

Find a rent a car deal in Iceland
Find a rent a car deal in Iceland

Despite these challenges and shifts, Eyrarbakki's historical legacy endures, offering a glimpse into its rich past as a vibrant trading town that once thrived along Iceland's southern coast. The town's journey from being a bustling commercial center to grappling with obstacles and changes reflects the dynamic nature of economic development and urban growth in a historical context. Eyrarbakki's story serves as a reminder of the complexities and intricacies involved in the rise and fall of towns and cities, showcasing the interplay of geography, infrastructure, and historical events in shaping their destinies.


A village that came to a standstill in time

Houses on the main street in Eyrarbakki village
Houses on the main street in Eyrarbakki village

After losing its role as a trading post, Eyrarbakki faced a pivotal moment in its history as it sought to transition into a thriving fishing town. The picturesque coastal location held promise for a prosperous future, but the town encountered numerous obstacles due to the challenging natural conditions that hindered the establishment of a functional harbor. Despite the resilience and determination of the local community, Eyrarbakki struggled to compete with other Icelandic towns that were strategically positioned for success in the fishing industry.


As Icelanders shifted their focus towards the lucrative herring industry in the Northern and Eastern Regions, Eyrarbakki found itself at a disadvantage, unable to fully capitalize on its potential as a fishing hub. The town's aspirations were overshadowed by the rapid growth and economic prosperity experienced by neighboring areas, leaving Eyrarbakki on the sidelines of Iceland's evolving maritime landscape.


Despite its setbacks, Eyrarbakki's history is a testament to the resilience of its inhabitants and their unwavering spirit in the face of adversity. The town's attempts to diversify its economy and adapt to changing circumstances reflect a broader narrative of perseverance and adaptation in the Icelandic coastal communities. While Eyrarbakki may have fallen behind in the race for prominence in the fishing industry, its legacy endures as a reminder of the challenges and triumphs that have shaped Iceland's maritime heritage.


Eyrarbakki is like a museum town for Iceland

Eyrarbakki is a nice municipality to live in
Eyrarbakki is a nice municipality to live in

Today, Eyrarbakki is valued for its historical significance, with many old houses that have been renovated and restored. The village has become a focus for tourism, and with improved infrastructure and transportation, residents now have easier access to employment opportunities in Selfoss or Reykjavík.


Eyrarbakki is part of the municipal Árborg, which also includes the nearby village of Stokkseyri and the town of Selfoss, as well as the surrounding agricultural communities.


Eyrarbakki is a small community in a larger municipal

Preschool in Eyrarbakki village
Preschool in Eyrarbakki village

The town of Eyrarbakki, nestled in the beautiful Icelandic landscape, offers a serene and charming environment for its residents. Its rich history is evident in the presence of one of the oldest primary schools in Iceland, serving as a testament to the town's longstanding commitment to education and community development. Eyrarbakki's integration into the larger municipal Árborg has further enriched its cultural tapestry, as it now shares its resources and amenities with the neighboring village of Stokkseyri and the bustling town of Selfoss. This amalgamation has created a dynamic and diverse community, where traditional Icelandic values blend harmoniously with modern conveniences. The surrounding agricultural communities add a rustic charm to the area, providing residents with a deep connection to the land and a sense of belonging. Overall, Eyrarbakki stands as a beacon of history, community spirit, and natural beauty in the Icelandic countryside.


If you're planning to tour Iceland in a rental car, make sure to read this article about the type of car that would be best for your trip.



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