Picturesquely situated on the shore and the steep slopes of Mt. Spákonufell, the little town is the homeport for mainly shrimp fishing boats. Skagaströndis is sometimes referred to as Höfðakaupstaður. The headland to the north, Spákonufellshöfði, is a nature reserve. Leaving Skagaströnd, the road runs on a grassy fringe of shore rising up to mountains penetrated by short valleys. The highway junctions with no 744 running northeast over Skagaheiði moor.