Puffins & Elves: Hidden Corners of East Iceland

Your puffin tour begins in Seyðisfjörður as you drive over the mountain pass to Egilsstaðir. The winding road, surrounded by steep mountains, is a filming location from The Secret Life of Walter Mitty. It also appeared in Trapped, where it famously closed during the fictional storm that shaped the series.

Egilsstaðir is the main town in East Iceland, sitting beside Lake Lagarfljót, the country’s third-largest lake. Local legends claim the Lagarfljót Worm lives in its depths. The descent from Seyðisfjörður gives you wide views over the lake and Fljótsdalur Valley.

Next, you continue north across another mountain pass toward Borgarfjörður Eystri, known for its elves and puffins. The winding road offers dramatic scenery with steep cliffs and high peaks. At the end lies the tiny village of Bakkagerði, its picturesque harbour, and the Hafnarhólmi peninsula. Thanks to its shelter from the weather, it is one of Iceland’s best puffin-watching locations.

A staircase, wooden walkway, and viewing platforms allow you to approach the birds safely. You may also see kittiwakes, fulmars, or eiders. Afterwards, you return to the village. With around a hundred residents, it is small yet full of folklore and history. Many guests enjoy a short hike or tasting local dishes.

You can also visit Lindarbakki, the red turf-roofed house that remains one of few inhabited turf homes in Iceland. If you wish, take an easy walk up Álfaborg, the hill believed to be the Elf Queen’s home, where she watches over the fjord. Back in the village, Alfa Café is a welcoming stop for waffles, fish soup, and regional treats.

On your return, you pause at Gufufoss to admire its misty drop and striking view over Seyðisfjörður. Similar to Skógafoss but far less crowded, this “steam waterfall” is a peaceful final sight before heading back.