An Icelandic town built on lava
Just a few minutes south of Reykjavik, Hafnarfjörður is one of Iceland's most unusual towns, built literally on top of an old lava field left behind by an eruption centuries ago. That geological origin shapes the entire townscape, with lava rock peeking out between houses, gardens and even municipal parks, creating a setting that feels like something out of a fairy tale.
The land of elves and hidden people
Hafnarfjörður is perhaps the Icelandic town most closely associated with elf folklore and the so-called hidden people, creatures that, according to local tradition, are said to live among the lava formations. There are even tourist maps marking supposed dwellings of these creatures around town, and the legend has been part of local identity for generations, now also a point of interest for visitors curious about this mystical side of Icelandic culture.

Hellisgerði park and the historic harbour
Hellisgerði park is one of the town's most special spots, built around old moss-covered lava formations, with trails winding between rocks and small trees. The still-active fishing harbour gives the town an authentic feel, far from the tourist bustle of Reykjavik, and makes a good starting point for a walk through the historic centre, with its colourful timber houses.
A great base for exploring the Reykjanes peninsula
Beyond its own attractions, Hafnarfjörður works very well as a base for exploring the Reykjanes peninsula, with its volcanic landscapes, recent lava fields and geothermal areas. The location is convenient both for those arriving from Keflavík Airport and for those wanting to visit Reykjavik without staying right in the capital, enjoying a quieter atmosphere in the evenings.

Where to stay in Hafnarfjörður
For a first visit, Hótel Hellisgerði https://travelguest.net/en/hotels/hotel-hellisgerdi-en has the advantage of sitting close to the park of the same name, one of the town's most photogenic spots. For travellers on a tighter budget, Vibrant Iceland Hostel https://travelguest.net/en/hotels/vibrant-iceland-hostel-en is a practical alternative, while Guesthouse Álfar https://travelguest.net/en/hotels/guesthouse-alfar-en offers a more homely setting for those who prefer that style of accommodation.
Getting there and getting around town
Hafnarfjörður is about twenty minutes by car or bus from central Reykjavik, connected by a reliable public transport network, which makes renting a car unnecessary just to visit the town. For those arriving directly from Keflavík Airport, the distance is even shorter than to the capital's centre, making Hafnarfjörður a practical option for either the start or the end of an Iceland trip. Within the town, almost everything can be done on foot, since the historic centre, the harbour and Hellisgerði park all sit just a few minutes apart from one another. Comfortable walking shoes are worth packing, since the lava rock underfoot in parts of town is uneven and can be slippery when wet. Signposting around the historic centre is generally clear, and most locals speak fluent English, so getting around and asking for directions rarely poses a problem for first-time visitors.
If you are looking for a quieter alternative to Reykjavik without giving up proximity to the capital, Hafnarfjörður deserves at least a full day on your Iceland trip, among legends, lava and a harbour with centuries of history.