12 Underrated Places in Iceland That Deserve to Be on Your Bucket List

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Iceland ruined my normal landscapes. Seriously, after seeing waterfalls taller than skyscrapers and black sand beaches stretching for miles, regular scenery just doesn’t hit the same. And while everyone flocks to the Blue Lagoon, there’s a whole island of jaw-dropping spots that most tourists never see.

The best places in Iceland aren’t always in the guidebooks. I spent three days exploring the Westfjords, where tiny fishing villages like Ísafjörður cling to dramatic coastlines and locals still leave their doors unlocked. The Tröllaskagi Peninsula blew my mind with its snow-capped mountains plunging into the Arctic Ocean—plus hot springs where you can soak without fighting crowds. Ready to discover an Iceland most visitors miss? These 12 incredible spots will make you wonder why you didn’t visit sooner.

Must-Visit Travel Destinations in Iceland

Looking to uncover Iceland’s hidden gems? Beyond the famous attractions, the country offers plenty of lesser-known treasures waiting to be explored. Wander through the Westfjords, known for their dramatic landscapes and solitude. Marvel at the Stuðlagil Canyon, a stunning basalt column canyon. 

Stroll the serene paths of Þórsmörk, a lush valley surrounded by glaciers. Whether you’re into nature, adventure, or unique landscapes, here are 12 of Iceland’s most underrated destinations!

1. Rauðasandur Beach

• 📍 Location: Westfjords
• 🏆 Best For: 🏖️ Beach walkers, 🦭 wildlife lovers, 🌅 peaceful sunsets
• 📸 Top Experiences: Walking the red-gold sands, spotting seals, enjoying views of Látrabjarg cliffs
• 📅 Best Time to Visit: June to August for warmer temps and wildlife sightings ☀️
• 🏨 Where to Stay: Fosshotel Westfjords – Scenic harbor-view stay in Patreksfjörður, about 40 minutes away

Rauðasandur Beach flips the script on Iceland’s usual dark coastlines. Instead of black volcanic sand, this stretch glows in golden and reddish tones, changing with the light and tide. It’s nearly 10 kilometers of quiet shoreline, backed by steep cliffs and far from typical tourist stops.

The drive here is an adventure in itself. Expect mountain passes with hairpin turns and views that get better with every curve. Once you arrive, seals often nap along the shore, and in summer, you might even catch a whale breaching in the distance.

What really makes it special is the solitude. Even during peak season, crowds are rare. With the towering Látrabjarg cliffs nearby, this beach offers a remote, cinematic escape for travelers looking to experience Iceland’s wild beauty without the selfie sticks. 

2. Hvítserkur

• 📍 Location: Vatnsnes Peninsula
• 🏆 Best For: 🐉 Myth lovers, 📷 sunrise photographers, 🦭 seal watchers
• 📸 Top Experiences: Photographing the sea stack, spotting seals nearby, visiting the Ósar coast
• 📅 Best Time to Visit: May to August for puffin season and long daylight hours ☀️
• 🏨 Where to Stay: Hotel Hvammstangi – Cozy, low-key stay near Icelandic Seal Center and Ring Road

Hvítserkur rises 15 meters from the sea and looks like a dragon sipping water. Local legends say it’s a troll turned to stone by the sun, and honestly, the eerie shape makes that story believable. Found along the Vatnsnes Peninsula, this sea stack becomes especially photogenic in the early morning light.

You can view it from a clifftop platform, but hiking down to the beach gives you a more dramatic perspective. Low tide allows visitors to walk close and explore the rugged shoreline. Bring sturdy shoes because the rocks can be slippery and wet.

Nearby, Ósar is home to one of Iceland’s largest seal colonies. Seals often rest on rocks or bob in the surf. With fewer tourists than Iceland’s southern coast, the area feels calm, remote, and incredibly rewarding for travelers who enjoy offbeat adventures.

3. Landmannalaugar

• 📍 Location: Fjallabak Nature Reserve, Central Highlands
• 🏆 Best For: 🏔️ Hikers, 🌈 nature photographers, ♨️ hot spring fans
• 📸 Top Experiences: Soaking in geothermal springs, hiking the Laugavegur Trail, exploring lava fields
• 📅 Best Time to Visit: July to early September for open roads and clear trails 🥾
• 🏨 Where to Stay: Hrauneyjar Highland Center – Remote lodge near F-roads and trailheads

Landmannalaugar is one of those places where you stop walking just to stare. The mountains glow in shades of orange, pink, and green thanks to their rhyolite rock. It’s a geothermal wonderland with hot springs, lava fields, and hiking trails that feel like stepping into a fantasy novel.

Reaching it is part of the adventure. You’ll need a 4×4 vehicle to drive Iceland’s rugged F-roads from Hella or Reykjavík. Once there, soak in the natural pool surrounded by colorful peaks or take short hikes with big views.

The area connects to the famous Laugavegur Trail, but even the shorter loops are packed with wild scenery. Because it’s so remote, you won’t deal with the usual crowds. Just be sure to check weather and road conditions before heading out as this area’s beauty comes with wild unpredictability.

4. Hengifoss and Litlanesfoss Waterfalls

• 📍 Location: East Iceland, near Egilsstaðir
• 🏆 Best For: 💦 Waterfall lovers, 🥾 scenic hikers, 📷 photography fans
• 📸 Top Experiences: Hiking the trail, viewing red-striped cliffs, exploring Litlanesfoss columns
• 📅 Best Time to Visit: June to September for accessible trails and vibrant colors 🌿
• 🏨 Where to Stay: Hótel Valaskjálf – Comfortable riverside hotel in Egilsstaðir with free parking and easy access to waterfall trails

East Iceland’s waterfall duo offers a peaceful break from the usual tourist-packed stops. Hengifoss, standing at 128 meters, is one of Iceland’s tallest waterfalls. Its cliffside is striped with red clay and black basalt, creating a dramatic visual contrast you won’t see elsewhere.

The uphill trail to Hengifoss starts with Litlanesfoss, a smaller fall framed by geometric basalt columns. It’s an ideal route for photography, and you’ll find benches along the way for breaks and scenic views. The path is well-marked and manageable for most hikers.

The atmosphere here is different from the south as it’s quieter, more serene, and full of raw nature. The combination of unique geology, hiking opportunities, and crowd-free views makes this one of East Iceland’s most rewarding hidden gems for outdoor enthusiasts and curious travelers alike.

5. Borgarfjörður Eystri

• 📍 Location: East Fjords, northeast of Egilsstaðir
• 🏆 Best For: 🐦 Puffin lovers, 🧚‍♀️ folklore seekers, 🥾 backcountry hikers
• 📸 Top Experiences: Puffin watching at Hafnarhólmi, hiking to Álfaborg, exploring elf legends
• 📅 Best Time to Visit: May to August for puffins and sunny weather ☀️
• 🏨 Where to Stay: Álfheimar Country Hotel – Quiet lodge with views of the harbor and surrounding mountains

Borgarfjörður Eystri is one of the most magical and remote places in East Iceland, known equally for its wild beauty and deep ties to Icelandic folklore. The village is about 70 kilometers from Egilsstaðir and takes effort to reach, but the payoff is unreal. The surrounding mountains are dotted with trails, and colorful rhyolite landscapes frame every step.

The puffin colony at Hafnarhólmi is one of the best in the country. Viewing platforms let you get remarkably close without disturbing the birds. From May to August, you can watch them land, feed, and nest just feet away.

Legends say elves live in the rocky Álfaborg outcrop that watches over town. You don’t have to believe the stories to feel something special here. The quiet, the trails, and the sky all seem a little more vivid in this part of Iceland.

6. Fjaðrárgljúfur Canyon

• 📍 Location: Near Kirkjubæjarklaustur, South Iceland
• 🏆 Best For: 🌄 Nature photographers, 🥾 casual hikers, 🎥 film location fans
• 📸 Top Experiences: Walking the rim path, viewing the canyon from above, exploring the riverbed
• 📅 Best Time to Visit: May to September for dry trails and lush greenery 🌿
• 🏨 Where to Stay: Magma Hotel – Stylish lakeside cabins with scenic views and cozy interiors

Fjaðrárgljúfur Canyon looks like it came out of a fantasy movie, and it kind of did. This 100-meter-deep gorge became famous after appearing in a Justin Bieber music video, but it’s still far less crowded than other Iceland landmarks. The twisting canyon stretches around 2 kilometers, carved by glacial waters over thousands of years.

Walking the rim trail gives you multiple panoramic viewpoints. The canyon’s curves, sheer cliffs, and winding river look especially dramatic from above. At low water levels, it’s also possible to enter the canyon from below and follow the river upstream for a more immersive feel.

Located just a short detour from Ring Road, it’s easy to reach but still feels surprisingly peaceful. If you visit in the early morning or just before sunset, you might have the whole place nearly to yourself.

7. Seyðisfjörður

• 📍 Location: Eastfjords, beyond Fjarðarheiði pass
• 🏆 Best For: 🎨 Art lovers, 🚶‍♀️ slow travelers, 🛶 fjord explorers
• 📸 Top Experiences: Walking Rainbow Street, kayaking in the fjord, browsing art galleries
• 📅 Best Time to Visit: June to August for clear roads and local festivals 🎉
• 🏨 Where to Stay: Hótel Aldan – Restored heritage house with cozy rooms in the heart of town

Seyðisfjörður feels like stepping into a fairytale tucked between dramatic mountains and a peaceful fjord. The first thing most travelers see is the iconic Rainbow Street that leads to a powder-blue church, one of the most photographed scenes in Iceland. But this tiny town has more than just Instagram charm.

The arts scene here is strong. Studios, galleries, and murals are everywhere, and the annual LungA Art Festival draws young creatives from all over Europe. Even the old buildings have character, painted in cheerful colors that brighten up foggy mornings and long evenings.

Nature surrounds the town on all sides. Hike the waterfall trails around the Fjarðarheiði pass, paddle the fjord in a kayak, or relax by the harbor and watch for seals. Seyðisfjörður is remote, but the journey is worth it if you’re chasing both solitude and soul.

8. Grjótagjá Cave

• 📍 Location: Near Lake Mývatn, North Iceland
• 🏆 Best For: 🧙‍♂️ Game of Thrones fans, 🌋 geology lovers, 🌊 cave explorers
• 📸 Top Experiences: Peering into the hot spring, exploring lava rock formations, seeing the tectonic plate divide
• 📅 Best Time to Visit: June to August for stable weather and clearer light inside the cave ☀️
• 🏨 Where to Stay: Fosshotel Mývatn – Modern hotel with lake views near top northern attractions

Grjótagjá Cave is a small lava cave with a steamy secret: crystal-clear blue geothermal water that once welcomed locals for a warm soak. Though bathing is no longer allowed due to high temperatures, the view alone is worth it. Light filtering through the cracks makes the water glow in an unreal shade of blue.

This cave gained fame as the filming site for Game of Thrones. Located just a few minutes from Reykjahlíð, it’s easily accessible by car or bike. The surrounding lava fields add to its rugged, post-apocalyptic vibe and are fun to explore on foot.

It’s also right along the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates meet. Visiting Grjótagjá feels like stepping into the earth’s core, minus the crowds you’ll find at bigger attractions nearby. It’s ideal to combine your visit with nearby Mývatn hot springs or Dimmuborgir lava fields.

9. Kerlingarfjöll Mountain Range

• 📍 Location: Central Highlands, along F35 route
• 🏆 Best For: 🥾 Hardcore hikers, 🧪 geothermal explorers, 📸 landscape photographers
• 📸 Top Experiences: Hiking through Hveradalir, soaking in hot springs, photographing the rust-colored rhyolite peaks
• 📅 Best Time to Visit: July to early September when F-roads are open for 4x4s 🌤️
• 🏨 Where to Stay: Highland Base Kerlingarfjöll – Comfortable highland lodge with access to hiking trails and thermal areas

Kerlingarfjöll is where Iceland’s volcanic heart really shows off. With steaming valleys, red rhyolite peaks, and winding rivers, this place looks more like Mars than Earth. You’ll need a 4×4 to reach it, and the remote drive through the Central Highlands is part of the adventure.

The geothermal area of Hveradalir is the star of the region, filled with bubbling mud pots, sulfur steam vents, and vivid mineral colors. Wooden boardwalks guide you safely through the heat and steam. Some trails lead to incredible views where the mountains seem to breathe beneath your feet.

The area stays quiet, even in summer, which means no crowded trails or loud tour groups. Pack solid hiking gear, snacks, and extra layers. The scenery here changes with every step, and it’s easy to spend hours wandering through Iceland’s surreal interior.

10. Hvammstangi

• 📍 Location: Northwest Iceland, near Vatnsnes Peninsula
• 🏆 Best For: 🦭 Seal watching, 🧶 local crafts, 🌊 peaceful coastal drives
• 📸 Top Experiences: Visiting the Icelandic Seal Center, exploring Vatnsnes Peninsula, browsing wool shops
• 📅 Best Time to Visit: May to August for seal spotting and sunny days ☀️
• 🏨 Where to Stay: Hvammstangi Cottages – Cozy cabins near the harbor with sea views and kitchenettes

Hvammstangi is a low-key fishing village with big nature energy. It’s one of the best places in Iceland to see seals lounging on rocks or swimming just offshore. The Icelandic Seal Center in town gives a great overview of the local marine life and is a fun stop before heading out.

From here, you can drive to wild spots like Illugastaðir and Ósar where seal sightings are almost guaranteed. The area also has quiet beaches, sea cliffs, and grazing sheep around nearly every bend. Roads are mostly unpaved but manageable in summer.

Besides wildlife, the village is also known for high-quality wool. Local shops offer handmade scarves, mittens, and blankets that make perfect souvenirs. The vibe in Hvammstangi is relaxed and uncrowded, great for travelers who want a slower pace between Iceland’s better-known sights.

11. Vestmannaeyjar (Westman Islands)

• 📍 Location: Off the South Coast, accessible via ferry from Landeyjahöfn
• 🏆 Best For: 🐧 Puffin lovers, 🌋 volcano history fans, 🚢 ferry adventurers
• 📸 Top Experiences: Climbing Eldfell Volcano, visiting the Beluga Whale Sanctuary, seeing puffins at Stórhöfði
• 📅 Best Time to Visit: May to August for puffins and smoother ferry crossings 🐦
• 🏨 Where to Stay: Hótel Vestmannaeyjar – Central island hotel with spa access and volcano views

The Westman Islands feel like a world apart, even though they’re just a short ferry ride from the mainland. The main island, Heimaey, is known for its dramatic volcanic history, charming harbor, and cliffs packed with puffins during summer. You can hike up Eldfell, a volcano that erupted in 1973, and still see warm ground underfoot.

The island is also home to the Beluga Whale Sanctuary, where rescued whales swim in a protected bay. For birdwatchers, Stórhöfði is a must. It’s one of the windiest places in Europe and one of the best for puffin sightings in Iceland.

Exploring Heimaey on foot or by bike is easy, and the pace is more relaxed than on the mainland. With few cars and no crowds, this island getaway feels like a deep breath between busy stops along the Ring Road.

12. Thakgil and Remundargil Canyons

• 📍 Location: Inland from Vík, South Iceland
• 🏆 Best For: 🏕️ Nature campers, 🥾 trail seekers, 🌲 off-grid explorers
• 📸 Top Experiences: Camping in Thakgil, hiking to canyon viewpoints, exploring mossy lava fields
• 📅 Best Time to Visit: June to September for clear trails and camping weather ⛺
• 🏨 Where to Stay: Hotel Kría – Comfortable stay in Vík with quick access to canyon roads

Thakgil and Remundargil are two of South Iceland’s most underrated canyon adventures. They sit about 30 minutes inland from Vík, but the road there winds through moss-covered lava fields and feels like a secret passage to another planet. These hidden green canyons are perfect for travelers craving peace, nature, and views without crowds.

Thakgil has a small campground set beneath jagged cliffs, complete with a natural cave used as a dining area. Hiking trails from the campsite lead to sweeping views of the surrounding glaciers and valleys. Remundargil is even more isolated, with fewer visitors and a real sense of wilderness.

Weather here can shift fast, so check forecasts before heading in. A 4×4 isn’t always required, but good tires and caution are essential. If you want raw nature just off the tourist radar, this is where Iceland quietly shines.

Frequently Asked Questions about the Best Hidden Gems in Iceland

Are you searching for more content about where to go in Iceland? Here are some common questions (and answers) I often receive about the most underrated places in Iceland.

What is the least visited part of Iceland?

The Westfjords region is often considered the least visited part of Iceland. Known for its dramatic landscapes and remote charm, it offers a serene escape from the more crowded tourist areas. The area’s isolation has helped preserve its natural beauty and authentic Icelandic culture.

Are there any hidden fees for visiting Iceland’s hidden gems?

Most natural attractions in Iceland, like Thakgil and Remundargil Canyons or Rauðasandur Beach, don’t have entrance fees. However, you might encounter parking fees, and certain facilities like campsites or museums may charge for their services.

How safe is it to explore off the beaten path in Iceland?

Exploring Iceland off the beaten path is generally safe, but it’s important to be prepared. Always check weather conditions before heading out, especially in remote areas like Kerlingarfjöll Mountain Range. Hiking trails can be challenging, so appropriate gear is essential.

What are the best underrated destinations in Iceland for families? Seyðisfjörður and Hvammstangi are great underrated destinations in Iceland for families. These locations offer a mix of nature, wildlife, and local culture, with activities suitable for all ages.

How long does it take to travel between these hidden gems in Iceland?

Travel times vary. For instance, Vestmannaeyjar is about a 30-minute ferry ride from the mainland, while Hvammstangi is about a three-hour drive from Reykjavik. Always plan for longer travel times due to Iceland’s winding roads and weather conditions.

Are there any unique natural sights in West Iceland?

Yes, West Iceland is home to unique natural sights like the Snæfellsjökull glacier and the Látrabjarg cliffs. These locations offer stunning views and are less crowded than more popular sites in the south.

What should I pack for a trip to Iceland’s hidden gems?

Essential items include weather-appropriate clothing (layers are key), sturdy hiking boots, a waterproof jacket, and a camera. For remote areas like Thakgil, bring enough food and water, as shops are scarce.

Final Thoughts on Iceland’s Hidden Gems

As we wrap up our journey through Iceland’s hidden gems, it’s clear that this stunning country has so much more to offer beyond its well-known attractions. From the serene beauty of Rauðasandur Beach to the dramatic landscapes of Thakgil and Remundargil Canyons, each destination we’ve explored offers a unique glimpse into Iceland’s diverse and captivating natural beauty. Whether you’re seeking adventure in the rugged Kerlingarfjöll Mountain Range, a peaceful retreat in the quaint village of Hvammstangi, or a cultural experience in the colorful town of Seyðisfjörður, Iceland’s lesser-known spots are sure to leave a lasting impression.

Remember, the key to enjoying these hidden treasures is to travel responsibly, respect the natural environment, and embrace the unexpected. Each location, with its own charm and character, invites you to explore, discover, and create unforgettable memories. So, pack your spirit of adventure, and get ready to uncover the hidden wonders of Iceland, a land where every turn reveals a new, awe-inspiring sight.