37 Best Restaurants in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

This family farm serves amazingly fresh dishes at their restaurant, Hlöðuloftið, including stuffed trout from the nearby lake and hamburgers from their own meat. But their downstairs ice-cream bar truly takes farm-to-table to another level with the delicious homemade ice cream you can enjoy while watching the dairy cows through a big glass window.

The only mushroom farmers in Iceland invite you to feast on pâté, spreads, sauces, and ice cream—all made out of mushrooms. There's an emphasis on slow cooking, and their herbs, meat, and vegetables come from neighboring farms.

Eating world-class food at a restaurant built into a lava cliff with views of the milky Blue Lagoon is a once-in-a-lifetime opportunity you will never forget. The set menu offers a gourmet meal for pescatarians, vegetarians, and carnivores at a reasonable price (by Icelandic standards).

Tucked away in this small town is a local brewery that uses geothermal energy to make quirky and tasty beers and eclectic and delicious wood-fired pizzas. The selection of draft beers changes depending on what concoction these master brewers made that week, but expect to find very creative ingredients—many of which are local. 

Tucked away in the sleepy fishing town of Hafnarfjörður, Pallett looks at times like an ad from a 1970s issue of Vogue with its jungle of houseplants, a rotary telephone at the counter, and cassette player blaring in the background. But this is more than just a hipster hangout: the food is hearty, wholesome, and inherently British (think freshly baked scones with homemade jam) and the coffee is made from award-winning beans. Pálmar Þór, co-owner and resident coffee guru, is a twice-national barista champion and makes a first-class Irish coffee that'll leave you feeling so serene, you might just want to stay in the 1970s a little longer.

For those looking to try authentic Icelandic food, look no further than this beloved family-run eatery. Specializing in fresh fish, their ethos is all about sustainability and slow food. And clearly it's worked, as many Icelanders make the long trip to Vestmannaeyjar purely for a dinner here. So don't be surprised if even a quick lunch at Slippurinn ends up being the meal you rave about for months after.

Stop at this local bakery for a taste of Icelandic pastries—be sure to try ástarpungar (deep-fried sweet bread with raisins), snúður (Icelandic cinnamon buns), or kókoskúla (sweet bread mixed with cocoa). They also serve fresh sandwiches, salads, and soups with sourdough bread.

At this great modern bakery-café by the harbor, you can enjoy delicious sourdough bread with tasty, original salads and mouthwatering pastries, either to eat there or to take with you on a road trip. In a city with as fierce a bakery scene as Hafnarfjörður, this spot is a true stand-out, and you’d be hard-pressed to find a local who isn’t obsessed with their cheese and tuna spreads.

This little café in an old netting factory by the harbor is famous for lobster soup and homemade cakes. Loved by locals and tourists alike, Bryggjan is adorned with flying buoys and framed photos from the town's older days.

Just outside the Secret Lagoon you will find a small shed serving delicious fish-and-chips. You can take them to go, sit out front at a picnic table if the weather is nice, or escape the Icelandic wind and cold and eat standing up in the warm and cozy shed. The shed's opening hours and days can be a bit erratic, so check on their Facebook page before you stop by. 

The highlight of Fjöruborðið is the incredible lobster tail. Pay a bit more for the side order of veggies with couscous, and you're on your way to culinary delirium. Reservations are highly recommended. 

Located in the second oldest building in Hafnarfjörður and shaped like a Norwegian Stave church, you will travel in time and land in a dark, wooden scene filled with Viking-inspired art. Fjörukráin serves traditional Icelandic meals on Viking-style trays carried by waiters dressed in Viking clothes. They often have live music too, and if you're lucky singing Vikings will show up and join you. If you are sick of the Scandinavian chic that you will find in most restaurants in Iceland, Fjörukráin is the place for you. 

Immerse yourself in everything Viking—from the style of architecture to the menu. Excellent seafood and meat dishes are served for those leery of traditional fare. It's next to the Viking Hotel.

This popular lunch spot serves traditional Icelandic hot dishes, like fish and lamb stews, just a few meters from its namesake Golden Circle sight. They also offer pastries, pizza, and sandwiches, so the whole family should be able to find something to their taste.

An honest family bistro run by a renowned and highly decorated chef is only a few minutes' walk from the harbor. Opt for the fish of the day; it is always fresh and delicious. The smell of freshly baked bread and organic coffee is enough to get any appetite going, and their famous date cake with caramel sauce and ice cream will win over any skeptic.

Three kilometers west of Eyrarbakki, this seafood restaurant sits almost right on the ocean—surprisingly uncommon in Iceland. Hafið bláa serves fresh seafood and very sweet Icelandic desserts.

This breakfast-and-lunch spot in Grindavík started in Halla's kitchen at home. Her specialty is fresh, healthy daily to-go bags, which are filled with snacks, fresh juices, a hot lunch, and something sweet—perfect for a long day of sightseeing.

Housed in one of the oldest buildings in South Iceland, this restaurant offers a panoramic view of the golf course below and the four volcanoes that guard the beautiful area. They serve fusion dishes that combine local, seasonal ingredients with South American techniques.

In any weather—even the most brutal snowstorm—Icelanders will meet their friends for an ice cream. Ísbúð Vesturbæjar is a famous family-owned ice-cream parlor with one of the best Bragðarefur (blended mix of crushed-up candy and vanilla soft-serve) in all of Iceland.

Overlooking the dark blue waters of Faxaflói Bay, Kaffi Duus has been part of the Keflavík Marina since the 1990s. They offer an extensive seafood menu that features a mix of Icelandic and Indian dishes, guaranteeing that anyone can find something to suit their fancy.

Simply put, Kanslarinn is like a classic American roadside diner with an Icelandic country twist. The space itself is not intended to impress, but their classic diner dishes and Icelandic favorites consistently deliver.

For over 20 years, Langbest has fed the citizens of Reykjanesbær to great acclaim. This is a must-stop for some of the region's best pizza, but they also serve hamburgers, steaks, and more.

This lively and elegant hotel bistro is perfect for a refreshing cocktail and a rich meal after a long day of endless lava fields and hot springs. On the weekends they serve brunch.

High-end food halls are a big trend in Iceland—and Mathöll Suðurlands is right up there with the best of them. Part of the Greenhouse hotel and shopping center, it offers a number of established and up-and-coming eateries. Don't miss the delectable kimchi-smothered chicken burgers at Yuzu or, for the vegans, the stellar mushroom open-faced sandwich from Hipstur. 

In an unassuming summer cottage at the town limits of Flúðir, you will find traditional Ethiopian specialties cooked and served by an Ethiopian-Icelandic couple. Eating spicy food with your hands surrounded by Ethiopian art is a real treat after a full day of sightseeing in the intense Icelandic terrain. Reservations are highly recommended. 

The people of Keflavík talk about Olsen Olsen like it's a family member—its legend precedes it. Grab a burger and a Coke and get a taste of what it was like when the U.S. Army introduced Icelanders to rock 'n' roll and fast food.

Eyrarbakki's only restaurant can be found in a stately red house facing the town church. Thankfully, it happens to serve one of the best lobster soups in the south of Iceland. Be sure to treat yourself to the aptly named chocolate lava cake.