Reykjavík
The capital, and where two thirds of the country lives. Bars, music and every tour departure.
Definitely a pricey town to do things in. But a very cool atmosphere to spend a day or two in. Lots of city activities and good food. It does feel very touristy in areas. I would come back though! A great base area for nature activities or tours.
A traveller, on Hostelworld
