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

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

Ever dreamed of finding a beach in Iceland that isn’t black? Where golden-red sands stretch for miles without another soul in sight? Rauðasandur delivers this rare Icelandic beach experience with its stunning copper-tinted shoreline.

Unlike Iceland’s typical black beaches, Rauðasandur surprises with golden-reddish sand stretching nearly 10 km along the Westfjords’ southern coast. The beach changes color with the light and weather. Located about 40 minutes from Patreksfjörður, the journey includes a scenic mountain pass with hairpin turns.

I couldn’t believe the stark contrast between this beach and others in Iceland. Visit the charming Café Franska near the beach entrance for homemade cakes before exploring the shoreline, where seals often lounge. Summer visitors may spot whales from shore. The beach sits beneath the towering Látrabjarg cliffs, making this remote corner of Iceland a magical escape from crowds.

2. Hvítserkur

What if you could watch the sunrise illuminate a 15-meter sea stack that locals swear is actually a petrified troll? Along Iceland’s northern coast, Hvítserkur offers exactly this mythical experience.

Rising 15 meters from the sea along northwest Iceland’s Vatnsnes Peninsula, the dramatic Hvítserkur basalt stack resembles a dragon drinking from the ocean. Legend claims it’s a petrified troll caught by sunrise. Located about 30 minutes off Ring Road 1, the best views come from the beach below the viewing platform.

The coastal road journey offers frequent sightings of Iceland’s largest seal colony. Visit at low tide to walk right up to the formation. Nearby Ósar Hostel provides convenient accommodation for early morning photography before day-trippers arrive.

This natural sculpture sits about 2.5 hours from Reykjavík, with the quaint fishing town of Hvammstangi just 30 minutes south.

3. Landmannalaugar

Picture yourself soaking in a natural hot spring surrounded by mountains painted in shades of rust, yellow, and green while the midnight sun bathes the landscape in golden light. This isn’t fantasy—it’s Landmannalaugar.

Nestled in Iceland’s central highlands, Landmannalaugar showcases nature’s vibrant paint palette with rhyolite mountains in shades of red, blue, green, and yellow. This geothermal wonderland, accessible only in summer (June-September), requires a 4×4 vehicle to navigate the rough F-roads from Reykjavík (3.5 hours) or Hella (2 hours).

The region’s crown jewel is the natural hot spring, where hikers soak their tired muscles after conquering the famous Laugavegur trail. Nothing beats relaxing in warm waters while surrounded by multicolored mountains. Beyond the springs, explore short hikes like Brennisteinsalda for panoramic views or the obsidian lava field Laugahraun.

4. Hengifoss and Litlanesfoss Waterfalls

Want to escape the tour bus crowds? Hike through East Iceland’s serene countryside to discover a 128-meter waterfall cascading down layers of black basalt striped with vivid red clay.

In East Iceland, about 35 minutes from Egilsstaðir, a moderately challenging uphill hike rewards visitors with two extraordinary waterfalls. Hengifoss, Iceland’s third-highest at 128 meters, cascades dramatically against black basalt layers striped with red clay.

The 2.5 km trail first passes Litlanesfoss, where hexagonal basalt columns frame the falling water in geometric precision. The contrasting colors make these falls among the most photogenic in Iceland. You’ll appreciate the quieter experience and the chance to enjoy these natural wonders without crowds.

The uphill trek takes about 40-60 minutes, with several viewpoints offering increasingly impressive perspectives.

5. Borgarfjörður Eystri

Thinking watching thousands of puffins return to their cliffside nests at sunset, then hiking through landscapes where elves allegedly still roam? In Borgarfjörður Eystri, Iceland’s folklore comes alive against a backdrop of pristine nature.

This remote harbor village in Iceland’s East Fjords offers an enchanting combination of folklore, wildlife, and rugged beauty. Located at the end of Road 94, about 70 km from Egilsstaðir, Borgarfjörður Eystri demands commitment to reach but rewards visitors abundantly.

The town is known for Hafnarhólmi, one of Iceland’s best puffin viewing spots (May-August), with purpose-built platforms for intimate bird watching. According to local lore, this area hosts Iceland’s largest elf population, with the prominent rock formation Álfaborg said to be their cathedral.

I’ve never seen such perfect harmony between folklore and nature anywhere else in Iceland. Hikers will discover paradise with numerous marked trails ranging from easy strolls to challenging mountain routes.

6. Fjaðrárgljúfur Canyon

Remember that otherworldly Game of Thrones landscape with the sinuous canyon that seemed too perfect to be real? Fjaðrárgljúfur is that place—a 100-meter-deep serpentine gorge where Middle Earth comes to life.

This remarkable canyon stretches for about 2 km near Kirkjubæjarklaustur in South Iceland, about 250 km east of Reykjavík. Fjaðrárgljúfur was carved out by glacial meltwater over thousands of years, creating walls with fantastical curved edges and pointed outcrops.

The canyon gained popularity after appearing in music videos, yet still feels like a discovery when visited early morning. Walking along the rim path offers several viewing platforms with dramatic perspectives of the meandering river below. If water levels permit, adventurous travelers can wade through the canyon floor. The canyon lies just 10 minutes off Ring Road, making it an easy addition to South Iceland itineraries.

7. Seyðisfjörður

Craving that perfect Instagram shot without the crowds? The rainbow-painted street leading to a sky-blue church in Seyðisfjörður delivers Nordic charm at its finest—plus a thriving arts scene.

Nestled within a fjord of the same name, Seyðisfjörður’s rainbow street leading to a sky-blue church creates possibly the most Instagram-famous scene in East Iceland. This artistic harbor town, tucked between towering mountains 27 km east of Egilsstaðir, charms visitors with its preserved wooden buildings painted in cheerful Norwegian-inspired colors.

The scenic drive includes hairpin turns over Fjarðarheiði mountain pass, offering breathtaking views and multiple waterfalls. The town’s artistic soul shines through its numerous galleries and annual LungA arts festival. I was captivated by how this remote outpost feels more cosmopolitan than towns triple its size.

For outdoor enthusiasts, kayaking the calm fjord waters provides up-close encounters with seals and porpoises.

8. Grjótagjá Cave

Remember that steamy cave scene between Jon Snow and Ygritte? Step into the actual filming location at Grjótagjá, where crystal-clear blue geothermal water fills a lava cave illuminated by filtered light.

Hidden in North Iceland’s geothermal wonderland near Lake Mývatn, this small lava cave with its crystal-clear blue water once served as a secret bathing spot. Grjótagjá gained fame after appearing in “Game of Thrones,” but remains less crowded than nearby attractions.

Located about 2 km east of Reykjahlíð village, the cave sits directly above the continental divide between the North American and Eurasian tectonic plates. Volcanic activity in the 1970s raised water temperatures to dangerous levels (around 50°C), so bathing is now prohibited.

The cave’s interior features impressive rock formations illuminated by light filtering through ceiling openings. I stood mesmerized watching the ethereal blue depths shift with the changing light.

9. Kerlingarfjöll Mountain Range

Ever wanted to hike across Mars without leaving Earth? Kerlingarfjöll’s rust-red mountains, billowing steam vents, and milky-blue hot springs create a landscape so alien you’ll check twice to ensure you’re still in Iceland.

This rhyolite mountain range in the central highlands delivers otherworldly landscapes of rust-red peaks, steaming vents, and milky-blue hot springs. Kerlingarfjöll, accessible via the challenging F-35 highway (4×4 essential) from June to September, sits about 3 hours from Reykjavík.

The area’s geothermal activity creates a striking contrast between snow, colorful mountains, and rising steam. The Hveradalir geothermal area offers the most concentrated display of hot springs and mud pots, with well-marked hiking trails ranging from 1-hour loops to full-day adventures. The moment I crested the final ridge to view the steaming valley below remains my most vivid Icelandic memory.

10. Hvammstangi

Looking for an authentic Icelandic fishing village experience without tourist prices? Hvammstangi offers harbor-side accommodations where you’ll wake to the sound of local fishermen heading out to sea.

This charming fishing village on the western shore of the Vatnsnes Peninsula in North Iceland offers a genuine glimpse into rural Icelandic life. About 2 hours north of Reykjavík, Hvammstangi serves as the perfect base for exploring the region’s wildlife and natural wonders.

The town is known as Iceland’s seal-watching capital, with Seal Travel offering boat tours that bring visitors remarkably close to curious harbor seals. The nearby Icelandic Seal Center provides fascinating insights into these marine mammals. Just outside town, the coastal road leads to impressive rock formations, including Hvítserkur.

After wildlife watching, warm up at the local Sjávarborg Restaurant serving fresh-caught fish that I still dream about years later.

11. Vestmannaeyjar (Westman Islands)

How often can you hike an active volcano that nearly destroyed a town, watch thousands of puffins nest on sea cliffs, and drink craft beer in a harbor-side pub—all in the same day? The Westman Islands deliver exactly this.

This volcanic archipelago off Iceland’s south coast offers some of the country’s most dramatic landscapes in a compact area. Heimaey, the only inhabited island, lies just 40 minutes by ferry from Landeyjahöfn harbor or 3 hours from Reykjavík by combined bus and ferry.

The island’s history changed in 1973 when Eldfell volcano erupted, nearly destroying the town and creating what locals call the “Pompeii of the North.” Hiking this still-warm volcanic cone provides panoramic views across to mainland Iceland. The island’s compact size makes it perfect for walking between attractions, including the Heimaklettur sea cliff and the Beluga Whale Sanctuary.

12. Thakgil and Remundargil Canyons

Need to escape the Ring Road crowds? Just 15 km from busy Vík lies a hidden valley where emerald moss clings to black volcanic walls, waterfalls cascade from cliff edges, and you might have the entire landscape to yourself.

Tucked away between glaciers and black sand deserts in South Iceland, these verdant canyons feel like discovering secret oases. Located 15 km north of Vík í Mýrdal, reaching Thakgil requires navigating a rough gravel road that winds through increasingly dramatic landscapes.

The reward is a lush, green valley floor surrounded by hexagonal basalt columns and moss-covered cliffs with numerous waterfalls. The adjacent RemundargilCanyon offers even more seclusion and a magical atmosphere. The surrounding cliffs created such perfect acoustics that I could hear water droplets falling from moss fifty feet away. Hiking trails ranging from 1-3 hours connect these canyons, with paths following crystalline streams.

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.