The history of Eyrarbakki stretches almost a thousand years. The small village was until the 1930´s one of Iceland´s most important sites of commerce and culture.
In the last decades the main score of employment has been fishing, industry and service.
Most of the houses built around the turn of the last century still stand. The oldest house in the village "Husid" from 1765 now houses the Árnessýsla Folk museum. There is also an interesting Maritime museum among whose exhibits is the boat Farsæll built in Eyrarbakki in 1915.
The restaurant café Lefoli is in a lovely old house at the West Side of the village. Breiðamýri marsh close to the village is well known for bird life. For nature lovers the beaches offer wonderful hikes