Best Restaurants in Reykjavik: Where to Eat in Iceland’s Capital
Eating in Reykjavik used to mean choosing between hot dogs or fermented shark. That has changed. Today, the city is a legitimate culinary destination. Local chefs focus on the "New Nordic" movement, prioritizing seasonal Icelandic ingredients like wild game, cold-water seafood, and greenhouse-grown vegetables. The dining scene is compact. You can walk between most top-rated spots in ten minutes. It is expensive, but the quality of raw ingredients justifies the price. From Michelin-starred tasting menus to harbor-side fish shacks, here is where to find the best food in the city.
Must-try dishes in Reykjavik
Before booking a table, know what to look for on the menu. Iceland’s isolation created a unique food culture centered on preservation and local livestock.
- Icelandic Lamb: These sheep roam free and eat wild herbs. The meat is lean, tender, and lacks the gamey funk of mainland lamb.
- Arctic Char: A cold-water fish that tastes like a cross between salmon and trout. It is a staple on almost every local menu.
- Langoustine: Often called "Icelandic lobster." These are smaller, sweeter, and more succulent than North American lobsters, typically served grilled in butter.
- Plokkfiskur: A traditional fish stew made from flaked cod or haddock, potatoes, and white sauce. It is the ultimate Icelandic comfort food.
- Skyr: This thick, high-protein dairy product is technically a cheese but eaten like yogurt. It appears in everything from breakfast bowls to cheesecake.
- Rye Bread (Rúgbrauð): A dense, dark, slightly sweet bread. Historically, it was baked in the ground using geothermal heat.
Best restaurants for a splurge
When you want a high-end experience, Reykjavik delivers with precision. These spots require advanced booking and a significant budget.
Dill – Downtown
Dill was the first restaurant in Iceland to earn a Michelin star. Located on Laugavegur, it serves a fixed tasting menu that focuses on sustainability and old-world Icelandic techniques. Expect ingredients like dried seaweed, smoked dung, and mountain herbs. The atmosphere is dark, moody, and intimate. It is the gold standard for New Nordic cuisine in Reykjavik.
ÓX – Downtown
Tucked away inside another restaurant (Sumac), ÓX is an exclusive 11-seat counter experience. You sit inches away from the chefs as they prepare a multi-course journey through Icelandic history. It feels like a private dinner party. The flavors are bold, and the storytelling is as important as the food. It is one of the hardest reservations to get in the city.
Matur og Drykkur – Grandi Harbor
Housed in a former salt-fish factory, this restaurant takes 100-year-old Icelandic recipes and gives them a modern, fine-dining twist. Their signature dish is a whole cod’s head cooked in chicken fat and honey. It sounds challenging but tastes incredible. The space is bright and industrial, reflecting the neighborhood’s maritime roots.
Best casual restaurants and local favorites
You don't always need a tasting menu. These locations are where locals go for a high-quality, reliable meal without the white tablecloths.
Messinn – Downtown
Messinn is famous for its fish pans. They serve fresh Atlantic fish—usually cod, salmon, or wolfish—straight from the pan with peripheral ingredients like butter, honey, and potatoes. The portions are generous and the vibe is cozy with wooden accents. It is one of the best restaurants in Reykjavik for a consistent, mid-priced seafood lunch.
Snaps Bistro – Skólavörðustígur
This is one of the most popular neighborhood hangouts in the city. It feels like a classic French bistro but serves a mix of European and Icelandic dishes. The moules-frites and the club sandwich are staples. Huge windows and plenty of indoor plants make it a great spot for people-watching near the Hallgrímskirkja church.
Sjávargrillid (Seafood Grill) – Downtown
Founded by a former "Chef of the Year," this spot focuses on grilled seafood and game. The decor is rustic, using driftwood found on Icelandic shores. Try the "Grill Party" tasting menu if you want to sample several local proteins in one sitting. It is upscale enough for a date but casual enough for a walk-in.
Sumac – Downtown
Inspired by the flavors of Beirut and North Africa, Sumac uses Icelandic ingredients like lamb and grilled vegetables but treats them with Middle Eastern spices. The charred cauliflower and grilled lamb ribs are standout dishes. The interior has a raw, concrete aesthetic that feels very North Atlantic-meets-Mediterranean.
Best cheap eats and street food
Reykjavik is expensive, but you can find value if you know where to look. These spots are perfect for a quick bite between tours.
Bæjarins Beztu Pylsur – Downtown
This is the most famous hot dog stand in the world. It has been open since 1937. Order "eina með öllu" (one with everything) to get raw onions, crispy onions, ketchup, sweet mustard, and remoulade. It is the cheapest meal you will find in the city and lives up to the hype.
101 Reykjavik Street Food – Downtown
If you want traditional Icelandic food without the restaurant prices, come here. They specialize in fish and chips, lamb soup, and plokkfiskur. Most dishes are served in bread bowls or cardboard containers. It is fast, hot, and significantly cheaper than a sit-down meal. The service is friendly and no-nonsense.
Icelandic Street Food – Downtown
This family-run spot focuses on two things: lamb soup and shellfish soup. They are known for offering free refills, which is a rarity in Iceland. It’s a tiny, bustling space where you can get a warm, filling meal for a fraction of the cost of a standard bistro.
Grandi Mathöll – Grandi Harbor
This is a converted fish warehouse turned food hall. It features various vendors serving everything from Korean street food to Icelandic fish and chips. It is the best place to eat in Reykjavik if your group can’t agree on a single cuisine. The views of the harbor are an added bonus.
Best breakfast and brunch
Coffee culture is huge in Iceland. Most locals skip hotel breakfasts in favor of independent bakeries and cafes.
Brauð & Co – Multiple Locations
The flagship bakery on Frakkastígur is easy to spot by its colorful graffiti exterior. They make the best sourdough and cinnamon rolls in the country. There is no seating; you stand in line, watch the bakers work, and take your pastry to go. The smell of baking butter hits you a block away.
Sandholt – Laugavegur
Sandholt is a sophisticated bakery and eatery that has been around for generations. They offer great breakfast plates, including shakshuka and house-made granola. Their pastry display is a work of art. It’s a great spot for a sit-down breakfast before you hit the shops on the main street.
Grái Kötturinn (The Grey Cat) – Downtown
A cozy, subterranean cafe that feels like a library. It is a favorite for those who want a quiet morning with a book and a "Truck" breakfast (pancakes, eggs, bacon, potatoes). It’s small and fills up fast, but the vibe is perfectly eccentric and old-school Reykjavik.
Best rooftop or view dining
Iceland’s weather isn't always outdoor-friendly, but these spots offer panoramic views of the city and the surrounding mountains.
Sky Lagoon – Kópavogur
While technically a spa, the Sky Cafe and Smakk Bar offer incredible floor-to-ceiling views of the Atlantic. They serve "tasting platters" featuring local cheeses, meats, and breads. It’s the best way to enjoy a meal while watching the sunset or the Northern Lights from a warm, indoor vantage point.
Petersen Svítan – Downtown
Located on top of the old Gamla Bíó theater, this rooftop lounge offers 360-degree views of Reykjavik. It is more of a bar that serves light bites, but the atmosphere is unbeatable during the summer months when the sun doesn't set. It’s the best place for a drink and a snack with a view.
Best food neighborhoods to wander
Old Harbour (Grandi): Historically the fishing hub, this area is now the city’s heart of food innovation. You will find the food hall, a chocolate factory (Omnom), and several high-end seafood spots. It has a raw, industrial feel.
Laugavegur and Skólavörðustígur: These are the two main walking streets. This is where you find the highest density of cafes, bakeries, and international bistros. It is perfect for "grazing"—starting with a pastry at one end and ending with a cocktail at the other.
Note: Opening hours and reservation requirements change frequently in Reykjavik; always check official websites before visiting.