
The town of Egilsstaðir barely existed in the middle of the 20th century when its first private home was built. Today, it is the largest town in the Eastern Region of Iceland, with approximately 3000 inhabitants as of January 2022. This development is typical for the slow and late urbanization in Iceland. The country had, for a long time, been an agricultural society that, at the turn of the 20th century, started to develop and rely on its fishing industry. Contrastingly, Egilsstaðir has been one of a handful of towns and villages in Iceland that have never seen any part of the fishing industry, as it is inland, with no connection to the sea or the shoreline. However, the town has a great view of the lake Lagarfljót, as it is located at the southeast bank of the beautiful lake. And even though it is inland, the town seems like a coastal village due to the altitude, which makes it ideal for the excellent weather conditions that the town enjoys. The town of Egilsstaðir is a product of the modern times, tracing its existence to its location at a crossroads and its development in the service and tourism sector. This is what makes Egilsstaðir unique among the towns and villages flora in Iceland. Egilsstaðir is a central town in the east region of Iceland and is impossible to miss when traveling through the Ring Road.
A new town based on crossroads

It was the government’s decision to build the town. Farms were bought and plans were made. The aim was to build a service center for the Eastern Region of Iceland. Growing from two to three farms, Egilsstaðir soon became a municipality. It started to develop as the location was ideal for both private and several government services for the surrounding agricultural region, and the towns and villages in the nearby fjords. As planned, the town quickly became the center of the East fjords.
At the time, the developing town of Egilsstaðir was much better suited for that role than communities that had difficult communication due to bad roads and insufficient transportation. Apparently, there was a demand to develop a centralized service center for the region that connected everything together.
Service center for anyone traveling in Eastern Iceland

Today, Egilsstaðir is one of the busiest tourist towns in Iceland during spring, summer, and autumn, as it is practically located in the middle of the Ring Road. It is almost the same distance to Reykjavík, whether you drive through the south shore or the north shore. Winter traffic in this town is yet to match the interest we see in the southwest region of Iceland. As tourism continues to grow, so does the strategic role of Egilsstaðir. It is becoming more and more important and plays the role admirably. The town offers good quality restaurants and cafés, and has one of the best camping sites in Iceland. Plus, you will find great accommodations in Egilsstaðir. If you are traveling and need to stock up, the town has excellent grocery and convenience stores. The people of Egilsstaðir have developed tourist services with great excellence. If you’re staying in Egilsstaðir, the town’s fantastic local swimming pool and hot tubs should not be missed!
Location and weather

The town of Egilsstaðir is located amidst a beautiful landscape with easy access to several exciting places in the Eastern Region of Iceland. It is an ideal place to stay if you would like to stop and enjoy the eastern fjords and visit places like Dyrfjöll, Mjóifjörður, Seyðisfjörður, Hengifoss waterfall or an evening stroll to Fardagafoss for a few days to. Alongside Akureyri airport and, of course, Keflavík international airport, the town has one of the best airports in Iceland, so coming to the country and flying to Egilsstaðir to explore the eastern fjords is absolutely an option.
Egilsstaðir is an excellent place for families

Egilsstaðir provides good service to its residents and is a pleasant town to raise children in. It has good preschools, primary and elementary schools, as well as a great high school. The municipality has a hospital and a good health care center, and takes good care of the elderly. It also has a community center, state-of-the-art sports facilities, and good access to a skiing area during winter for the locals.
Accommodation Options in Egilsstaðir
Whether you are looking for luxury, comfort, or budget-friendly lodging, Egilsstaðir has a variety of accommodation options to suit different travel styles. Some of the best-rated options include:
Hotel Eyvindará A family-run hotel nestled near Egilsstaðir, offering a variety of accommodations including standard double/twin rooms, annex rooms with private terraces, and cozy cottages. Guests can enjoy modern amenities, complimentary breakfast, and access to hot tubs for relaxation. The hotel is surrounded by scenic landscapes, making it an excellent base for exploring East Iceland.
Hótel Hallormsstaður Located approximately 25 km from Egilsstaðir, this hotel emphasizes comfort and wellness, offering various accommodations from cottages to superior rooms amidst Hallormsstaður forest. Guests can indulge in on-site dining at Kol Bar & Bistro and Lauf Restaurant, relax at Lindin Spa, and enjoy the serene natural surroundings.
Berjaya Hérað Hotel Situated in the heart of Egilsstaðir, Berjaya Hérað Hotel provides modern and inviting accommodations. The hotel features comfortable rooms, an on-site restaurant offering local cuisine, and is conveniently located near the town's amenities, making it an ideal choice for travelers seeking both comfort and accessibility.
Hótel Valaskjálf Located in a peaceful area of Egilsstaðir, Hótel Valaskjálf offers recently renovated rooms equipped with private bathrooms, televisions, and complimentary Wi-Fi. Guests can enjoy dining at the on-site Glóð Restaurant, which serves dishes influenced by Mediterranean cuisine, including pasta, fish, meat dishes, and authentic Italian pizzas baked in a handcrafted oven from Rome. The hotel also features Ölstofan, a bar offering a selection of cocktails and draft beers, with a daily happy hour from 16:00 to 18:00.
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