The best bars in Iceland are a handful of standout spots that combine Icelandic flair, top‑notch craft beer selections, and a vibe that fits both locals and travelers. If you want the ultimate Icelandic bar experience, head straight to Kex Hostel’s bar in Reykjavik, then make your way to Mikkeller & Friends, followed by the historic Kaldi Bar, and finish with the coastal charm of Hlemmur Mathöll’s bar scene.
Why These Bars Outshine the Rest
Each of these venues excels in a different dimension of the bar experience. Kex Hostel’s bar offers a gritty, industrial setting with an ever‑changing tap list that showcases Icelandic microbreweries like Borg Brugghús and Ölgerðin. Mikkeller & Friends brings a global perspective, importing rare Danish brews while still giving local brewers a platform. Kaldi Bar is the go‑to for anyone who wants a classic Icelandic pub atmosphere, complete with live music and a menu of hearty Icelandic bar snacks. Finally, Hlemmur Mathöll’s bar area blends a food‑market vibe with an impressive selection of both local and international beers, making it perfect for those who want to sip and snack in a lively crowd.
What ties them together is a commitment to quality, a sense of place, and a willingness to educate patrons about the stories behind each brew. This focus on craft and culture is what makes them the best bars in Iceland, not just the most popular.
What Most Guides Get Wrong
Many travel articles lump together every Reykjavik watering hole under the generic label “bars in Iceland,” assuming that any venue with a tap will satisfy a visitor. This approach ignores three key factors: the depth of the beer selection, the authenticity of the atmosphere, and the bar’s role in the local drinking culture. For example, some guides recommend tourist‑heavy spots that serve a limited selection of mass‑market lagers, missing out on the burgeoning craft scene that Iceland has cultivated over the past decade.
Another common mistake is treating the bar scene as a monolith, failing to differentiate between the downtown nightlife clubs and the more intimate craft‑beer bars. Travelers looking for a genuine taste of Icelandic brewing often end up in noisy clubs where the focus is on loud music rather than the drink. Finally, many lists forget to mention the importance of food pairings, which are essential in Iceland where the climate calls for hearty, flavorful bites alongside the beer.
How Iceland’s Bar Culture Evolved
After the 2008 financial crisis, Iceland experienced a renaissance in small‑scale brewing. Homebrewers turned their kitchens into experimental labs, and by the early 2010s, microbreweries like Borg and Ölgerðin began distributing to local bars. This boom coincided with a growing tourist interest in authentic experiences, prompting bars to showcase local brews alongside curated imports.
The result is a bar landscape that feels both global and uniquely Icelandic. Bars now often double as cultural hubs, hosting art shows, live folk music, and even beer‑pairing dinners. The emphasis on storytelling—whether it’s the volcanic water used in brewing or the saga‑inspired naming of beers—adds depth that generic bar lists overlook.
What to Look for When Choosing a Bar in Iceland
Beer selection depth: Look for bars that rotate taps weekly and feature both Icelandic and international craft beers. A robust list signals a dedication to the craft.
Atmosphere and authenticity: Bars that retain local design elements—think reclaimed wood, lava stone accents, or murals depicting Icelandic folklore—provide a more immersive experience.
Food pairing options: Quality bar snacks or full‑on menus that complement the beer are a sign of a well‑rounded establishment. For instance, the guide to bars with food where to sip and savor highlights how pairing can elevate the whole visit.
Community vibe: Bars that host local events, from brewing workshops to live music, are usually more integrated into the Icelandic drinking culture and offer a richer experience.
Deep Dive into the Top Picks
Kex Hostel Bar – Reykjavik
Housed in a former biscuit factory, Kex’s bar is a raw, industrial space that feels like a living museum of Reykjavik’s past. Its tap list changes twice a week, featuring fresh releases from Borg Brugghús, the pioneering Icelandic brewery, as well as experimental brews from smaller outfits like Ölvörður. The bar also serves a solid selection of classic Icelandic spirits, giving visitors a chance to sample aquavit and Brennivín alongside the beer.
The vibe is laid‑back, attracting a mix of backpackers, locals, and expats. The staff are knowledgeable and eager to explain the nuances of each brew, making it a perfect starting point for anyone new to Icelandic craft beer.
Mikkeller & Friends – Reykjavik
Originally a Danish import, Mikkeller & Friends opened its Reykjavik branch in 2015 and quickly became a beacon for beer aficionados. The bar offers over 30 taps, rotating between rare Danish imports, limited‑edition collaborations, and a curated selection of Icelandic craft beers. Their signature “Icelandic Summer Ale” is a must‑try, brewed with local Arctic thyme and barley.
Beyond the beer, the bar’s design—modern Nordic minimalism with soft lighting—creates an intimate setting for tasting sessions. They also host monthly “Beer & Food Pairing” events, where chefs craft dishes that highlight the flavors of each brew.
Kaldi Bar – Reykjavik
Kaldi is the oldest bar in Reykjavik still operating under its original name, dating back to the early 1900s. It has retained its classic wooden interior, complete with vintage Icelandic beer advertisements on the walls. While its beer list is smaller than the newer craft‑focused spots, it includes timeless Icelandic staples like “Gull” lager and “Viking” stout.
The real draw here is the atmosphere: live folk music on weekends, a bustling crowd of locals, and a menu of traditional bar snacks such as “skyr” cheese plates and smoked lamb sausages. For travelers seeking an authentic Icelandic night out, Kaldi offers a genuine glimpse into the country’s drinking heritage.
Hlemmur Mathöll – Reykjavik
Located in the renovated Hlemmur bus terminal, this food‑market‑style venue houses several bar counters under one roof. The “Bar at Mathöll” serves a rotating tap list that emphasizes seasonal Icelandic brews, often sourced directly from the breweries that produce them. Their emphasis on local ingredients extends to the food stalls, where you can pair a crisp Icelandic pilsner with fresh seafood tacos or a hearty lamb stew.
The setting is vibrant and communal, perfect for groups who want to sample multiple beers in one night. The market’s open‑air design also means you can enjoy the midnight sun in summer or the soft glow of Reykjavik’s streetlights in winter while sipping a cold brew.
Common Mistakes Tourists Make
First, assuming that all Icelandic bars serve the same generic beer. In reality, the craft scene is diverse, and missing out on a rotating tap can mean missing a limited‑edition brew that won’t be available elsewhere. Second, overlooking the importance of food; many visitors stick to just drinks, but Icelandic bar snacks are crafted to complement the beers and enhance the overall experience. Third, timing visits only for the weekend club scene—most of the best bars are quieter on weekdays, offering a more relaxed environment and better chances to talk to bartenders about recommendations.
Finally, failing to respect local customs. Icelanders value a moderate drinking pace and appreciate when visitors engage with the culture rather than just “tourist‑hopping” from bar to bar.
Verdict: Which Bar Wins for Each Type of Visitor
If you’re a craft‑beer purist craving the freshest Icelandic taps, Kex Hostel’s bar is the clear winner. For those who love a global selection and want expertly curated pairings, Mikkeller & Friends takes the top spot. If you seek a genuine local atmosphere with live music and traditional snacks, Kaldi Bar is unbeatable. And for a lively, food‑centric experience that lets you sample many brews in one night, Hlemmur Mathöll’s bar area is the best choice.
In short, the best bars in Iceland are not a single destination but a curated itinerary that lets you taste the country’s brewing evolution, soak up its cultural vibe, and enjoy food that makes each sip unforgettable.
