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.
