Hidden Gems in Golden Circle

The Golden Circle is the most popular tourism route in all of Iceland. But while most travelers visit the same major attractions, there are still places that remain peaceful, authentic, and not crowded. If you are planning to visit the Golden Circle, here is some good news, there are still true hidden gems in the Golden Circle waiting to be explored. These special places offer natural beauty, history, and a real sense of Icelandic culture, all without the crowds. Let’s take a look at some of the best hidden gems in Golden Circle.

Caves of Laugarvatn

Driving to the caves through untouched nature feels like a step back in time. When you arrive, you reach the place where Iceland’s last known cave-dwelling family once lived. Step inside the hillside and discover how people made a home here about 100 years ago. A local guide will walk you through the history and stories of survival, resilience, and daily life in the caves.

These sandstone shelters look like tiny hobbit houses tucked into a cliffside. It is one of the most unique photo stops and one of the most memorable hidden gems in Golden Circle. Plus, it is among the most affordable experiences on your journey. You can learn more and plan your visit at www.cavesoflaugarvatn.is.

Skálholt Cathedral

This calm, spiritual place is a key part of Icelandic history. Churches have stood here since the year 1000, and Skálholt became the seat of Iceland’s first bishop in 1056. The current cathedral, completed in 1963, is still one of the country’s most important religious sites. The area is surrounded by gentle hills and old farms, and it remains a peaceful stop full of meaning. Skálholt is one of the most historic hidden gems in the Golden Circle.

Brúarhlöð

Between Gullfoss and Geysir, you’ll find Brúarhlöð a canyon carved by the powerful Hvítá river. The canyon features unusual rock formations, pillars, and cliffs shaped by the flowing water over thousands of years. In the middle of the river, you can spot two large rocks that create a striking view. This quiet, scenic area is easy to miss but definitely one of the most visually impressive hidden gems in Golden Circle.

Hrunalaug Hot Spring

Hrunalaug is a small natural hot spring near the village of Flúðir. The pools here are warm and calm, fed by natural geothermal heat. The oldest pool dates back to around 1890 and was originally used for bathing and laundry. A second pool was built in 1935 for sheep, and a third was added in 2017 for visitors. The atmosphere here is relaxed and intimate, making it a perfect hidden gem in Golden Circle for a quiet soak.

Faxafoss

Faxi waterfall is smaller than Gullfoss but just as charming in its own way. It stands about seven meters tall and stretches around 80 meters wide. The water flows in a gentle curtain, and the area is quiet with beautiful surroundings. You can walk close to the falls for a great photo or just sit and enjoy the calm. This is one of those peaceful hidden gems in the Golden Circle that often gets overlooked.

Just a few minutes from Caves of Laugarvatn, you’ll find the small but fascinating village of Laugarvatn, a charming little community with just around 260 inhabitants. Despite its size, it’s full of character, geothermal wonders, and a rich history. Laugarvatn sits right in the heart of the Golden Circle, making it a perfect stop for travelers exploring Iceland’s most popular route.

If you’re looking for things to do in Laugarvatn, you’re in for a mix of natural beauty, local traditions, and peaceful moments. The village offers experiences that are rooted in both nature and Icelandic culture. Whether it’s soaking in a hot spring, tasting freshly baked rye bread, or listening to stories inside a sandstone cave, there are plenty of things to do in Laugarvatn that feel truly authentic and unforgettable.

What makes Laugarvatn special is the contrast between the cold lake and the heat rising from the earth. The village lies next to Lake Laugarvatn, and while the lake itself is chilly, the shoreline steams with hot springs and warm geothermal water flowing directly into it. For generations, locals have used these springs for cooking, bathing, house heating, and steam therapy. That deep connection to the earth is the reason the village was settled here in the first place.

Laugarvatn also has its place in Icelandic architectural history. Two beautiful historic buildings in town were designed by Guðjón Samúelsson, one of the country’s most celebrated architects. These are Björk Guesthouse, built in 1930, and Héraðsskólinn, built in 1928. Guðjón’s other famous works include Hallgrímskirkja in Reykjavík, the Church of Akureyri, the National Theatre, Landakotskirkja, and Hotel Borg. These buildings add a layer of cultural depth to this small but significant town.

Whether you’re drawn by nature, history, or a chance to relax, Laugarvatn is one of those places where everything seems to come together in a way that feels genuinely Icelandic. Below are some of the most memorable things to do in Laugarvatn while visiting.

Laugarvatn Fontana Geothermal Baths

The most popular attraction in town is Laugarvatn Fontana, a geothermal spa right on the lakeshore. The hot pools are filled with water drawn directly from the ground, and the steam baths are truly something special. Built right over bubbling natural springs, the steam rises straight through the floor grates of three traditional cabins. You can hear the gurgling water underneath and smell the natural minerals in the air, making this a deeply grounding and relaxing experience. Locals have been using these natural steam baths since 1929, and today, Fontana carries on that tradition in a more refined but still authentic way.

Geothermal Bakery Tour – Rye Bread in the Sand

For a real taste of Iceland, don’t miss the geothermal bakery tour at Fontana. Locals have been baking rúgbrauð (rye bread) in the hot black sand by the lake for decades. On the tour, guides walk you down to the lakeside, dig up a pot of freshly baked bread from the warm earth, and serve it hot with Icelandic butter. It’s simple, traditional, and surprisingly delicious—and definitely one of the tastier things to do in Laugarvatn.

Hiking in and Around Laugarvatn

The natural surroundings of Laugarvatn are ideal for hiking, walking, or trail running. You’ll find peaceful forest paths and hillside trails on and around Mount Laugarvatnsfjall, which overlooks the village. If you hike to the top, you’ll be rewarded with panoramic views of the lake, the village, and the sweeping countryside beyond.

A stroll along the lake’s shoreline is also lovely. Watch for bubbling patches of hot water in the sand and keep an eye out for wild birdlife. It’s a quiet and beautiful way to experience Icelandic nature up close—and one of the most relaxing things to do in Laugarvatn.

Paddleboarding on Lake Laugarvatn

The shallow, calm waters of the lake make it a great place for paddleboarding or canoeing. Whether you’re gently paddling at sunrise or drifting in the stillness of the afternoon, it’s a peaceful way to take in the scenery from a new perspective.

Winter: Cross-Country Skiing or Skating on the Lake

In the winter months, if the conditions are right, Lake Laugarvatn can freeze over enough for cross-country skiing or ice skating. It’s a rare but magical experience, gliding across a frozen lake surrounded by mountains and geothermal steam. Just remember to bring your own gear, as rentals aren’t available in the village. It’s one of the more unique things to do in Laugarvatn if you’re visiting in the colder season.

Caves of Laugarvatn (Laugarvatnshellar)

Driving to the caves from the main road through untouched nature is unreal. Then you arrive at the cave where Iceland’s last known cave dwellers once lived. You’ll step into the hillside and see first-hand how a family made their home here about 100 years ago. A local guide will share stories of how they survived the elements with few possessions and deep resilience.

The caves look like a little hobbit house tucked into a sandstone cliff. It’s great for photos, full of stories, and easily one of the most memorable things to do in Laugarvatn. Plus, it’s one of the most affordable experiences on the Golden Circle.

You can learn more and plan your visit at www.cavesoflaugarvatn.is.

The Golden Circle is the most popular tourist route in Iceland and for good reason. Just outside Reykjavík, this region is filled with incredible landscapes, geothermal activity, waterfalls, and a deep sense of history. There are so many things to do in Golden Circle that it can be hard to know where to begin. You’ll find world-famous landmarks and quiet local treasures like the Caves of Laugarvatn and Skálholt. If you have the time, staying one or two nights in the Golden Circle gives you a chance to really take it all in. Laugarvatn is a great place to base yourself. Below are some of the most memorable places you should not miss.

Þingvellir

Þingvellir is one of Iceland’s most important cultural and geological sites. It was here that the Icelandic parliament was founded in the year 930 and where the nation later embraced Christianity around the year 1000. In 1944, Iceland declared its independence from Denmark at this very spot. Þingvellir is also where the Eurasian and North American tectonic plates meet. You can actually snorkel or dive between them in the Silfra fissure. Walk through scenic trails, visit the Þingvallakirkja church, and enjoy the peaceful atmosphere of this historic place.

Caves of Laugarvatn

If you are looking for unique things to do in Golden Circle, the Caves of Laugarvatn are a must. Just a short drive through peaceful nature leads you to caves carved into a sandstone cliff, where a family once lived just over 100 years ago. These cozy human dwellings look like something out of a storybook. With a local guide, you’ll hear real stories of life in the caves and see firsthand how people survived in such a setting. The site is affordable and full of charm. Visit www.cavesoflaugarvatn.is for more info.

Fontana geothermal bakery tour

On the shores of Lake Laugarvatn, Fontana offers a bakery tour unlike any other. Icelanders have long baked rye bread by burying it in the hot black sand near the lake. During the tour, you’ll walk to the shore, see a fresh pot of bread pulled from the ground, and taste it warm with Icelandic butter. It is a simple tradition that still feels special.

Brúarfoss

Brúarfoss is a small but striking waterfall located between Geysir and Laugarvatn. To reach it, you take a peaceful 2 to 3 kilometer walk through Icelandic nature. The water is bright blue, and the narrow channel it flows through creates a beautiful contrast with the surrounding dark lava rocks. Fewer tourists make the walk here, so it often feels like a quiet escape.

Geysir

This geothermal area gave its name to all geysers around the world. While the original Geysir is mostly dormant today, Strokkur nearby erupts every few minutes. Watching boiling water shoot high into the sky is always exciting. The geothermal ground in this area is colorful and steaming, giving you a real sense of the Earth’s raw energy.

Gullfoss

Gullfoss is one of Iceland’s most famous waterfalls and a highlight of the Golden Circle. The waterfall drops in two powerful stages into a canyon below. On sunny days, you can often see rainbows forming in the mist. It is only a short drive from Geysir, which makes it an easy and unforgettable stop.

Skálholt Cathedral

Skálholt has played a key role in Iceland’s religious and cultural history. Churches have stood on this spot since around the year 1000 and it became the seat of Iceland’s first bishop in 1056. The current church was completed in 1963 and still serves as one of the most important religious sites in the country. The area is calm and surrounded by gentle hills and historic charm.

Kerið crater

Kerið is a volcanic crater with vivid red rock walls and a deep blue lake at the bottom. The shape is nearly perfect and it is easy to walk around the rim for sweeping views or follow the path down to the water. Its colors and symmetry make it one of the most photographed places in the Golden Circle.

Hot springs in the Golden Circle

Relaxing in hot geothermal water is one of the best things to do in Golden Circle. Fontana in Laugarvatn has steam rooms built directly over natural springs. The steam rises through wooden floor grates, filling the cabins with warm, mineral-rich air. Not far away in Flúðir, the Secret Lagoon offers an old-style bathing experience in Iceland’s oldest pool. In late 2025, the brand-new Laugarás Lagoon is set to open near a quiet river, and we can’t wait to try it.

Final thoughts

There is no shortage of amazing things to do in Golden Circle. From waterfalls to volcanoes to quiet cultural sites, every stop offers something different. Taking your time through the area, especially with an overnight in Laugarvatn, lets you enjoy both the famous highlights and the hidden gems that make the Golden Circle so special.