Reyðarfjörður fjord is long, wide and curving, and is the largest of the eastern fjords. At the end of it rests the village known variously as Reyðarfjörður or Búðareyri.
Reyðarfjörður is a good base from which to explore the surrounding area. It is central and has all the necessary facilities, in addition to being surrounded by stunning scenery. On one side there are magnificent rocky peaks, on the other gentle green hills, something which should bring hours of enjoyment to both the experienced hiker and novice walker.
In the past, Reyðarfjörður was the commercial center for farmers in nearby Fljótsdalshérað district. Among favored sights in the area is Mount Grænafell, the top of which may be reached by a hike of approximately two hours. The trail leads up an especially beautiful gorge and once the top is reached the panoramic view of Reyðarfjörður is breathtaking.
There is a large duck pond In the village called Andapollurinn, into which Salmon is released on a regular basis. Fishing licenses are available for purchase.
The Reyðarfjörður campsite is situated by the water. The Icelandic World War II museum in Reyðarfjörður offers an opportunity to travel back to the days of the occupation, while a somewhat different attraction is the burial site of the ancient seer, Völva, who on her deathbed vowed to protect Reyðarfjörður as long as her bones remained in their resting-place on Hólmaháls. Also worth seeing are the summer market and the geological collection.