A Local Guide to Laugavegur Street in Reykjavík

Laugavegur Street in Reykjavík stretches about two kilometers (1.2 miles) through the 101 district. The street is lined with shops, cafes, and bars from one end to the other.

This guide walks you through the history, the shops, and the food along Laugavegur in Reykjavík. It also covers nearby attractions and where to stay, including the Exeter Hotel, a short walk away by the Old Harbor.

What Is Laugavegur Street in Reykjavík? 

One of the oldest streets in Reykjavík, Laugavegur, was built up in 1885. Long before it became a shopping street, women carried laundry along this path to hot springs in Laugardalur. The route gave the street its name, which translates to Wash Road.

By the early 1900s, the path had grown into a row of shops and workshops. Today, those same blocks hold fashion stores, cafes, and bars instead of laundry carts.

What Can You Buy on Laugavegur Street? 

Laugavegur is the main shopping street in Reykjavík, lined with fashion boutiques, souvenir shops, and Icelandic design stores. Locals and visitors browse here for everything from wool sweaters to handmade jewelry. Most storefronts sit within a few steps of each other, making it easy to compare options.

What you will find along the way:

• Icelandic wool sweaters and knitwear

• Locally made jewelry and ceramics

• Souvenir shops with lava rock gifts and Viking-themed items

• Vintage and secondhand clothing stores

Reykjavík does have shopping malls outside downtown for one-stop shopping, but Laugavegur feels different. Most of the stores here are small and independently owned, so you’re browsing local finds rather than chain retailers.

Where Are the Best Places to Eat and Drink on Laugavegur?

Shopping and dining naturally overlap here, with dozens of restaurants and bars lining Laugavegur Street in Reykjavík. Menus along the street range from Icelandic seafood to international dishes and quick hot dog stands. Most restaurants sit within a block or two of the shops, so a meal break never means leaving the street.

A short walk from Laugavegur also puts a few Exeter Hotel spots within easy reach:

• Deig: The hotel bakery, for coffee, donuts, and bagel sandwiches

• Le Kock: Known locally for serving the best burger in the city

• Tail: The hotel bar, for a relaxed evening drink

These three spots make a great start for trying Reykjavík nightlife. They are all close by, so you never have to walk far from Laugavegur.

What Makes Laugavegur Street Unique?

Murals and colorful facades line Laugavegur, turning a walk into an open-air gallery. Local artists have painted folklore scenes, geometric patterns, and portraits directly onto building walls. Side streets like Klapparstígur add even more color, and tourists often stop there for photos.

That same creative energy carries into the shop windows, where local designers favor natural materials like wool and lava stone over mass-produced goods. It’s part of what gives Laugavegur its identity: even a quick browse feels more like exploring a local gallery than a typical shopping trip.

Things to See Within Walking Distance of Laugavegur

Several landmarks sit within 15 minutes of Laugavegur, making it easy to cover on foot. These nearby stops are worth building into your walk:

• Hallgrímskirkja Church: About 10 minutes uphill, with views over the whole city from its tower

• The Pond and City Hall: Just south, with walking paths along the water

• Reykjavik Art Museum: At Tryggvagata 17, with rotating exhibits of contemporary Icelandic and international art

The museum sits close to Exeter Hotel near the harbor end of downtown. Most tourists stick to the obvious stops, but a few Reykjavik hidden gems are worth seeking out too.

Where Should You Stay Near Laugavegur Street?

Exeter Hotel sits by the Old Harbor, an easy walk from Laugavegur and most downtown sights. Downtown hotel Exeter gives guests a comfortable, social base without losing the city’s energy. Rooms range from the Economy Room to the Harbor Suite, depending on your trip.

Start the morning at Deig, the hotel’s own bakery, before heading out to explore. If you want a sit-down bakery on Laugavegur itself, Sandholt Bakery is a longtime local favorite. Either way, you get a proper Icelandic breakfast before a day of walking and shopping.

Some guests only have a day or two in Reykjavík before moving on. Our stopover in Reykjavík guide shows how to fit in Laugavegur and the harbor area.

Tips for Visiting Laugavegur Street

Laugavegur is one of the busiest streets in the city, so a little planning can make the visit smoother. These quick tips cover timing, payment, and what to wear.

• Visit before 11 am for quieter shopping, before the crowds arrive.

• Wear comfortable shoes, since the street runs over uneven, sloped pavement for a fair stretch.

• Carry a card instead of cash, since most shops and cafes accept cards.

• Check hours before Sundays and holidays, when some shops close early.

• Walk one block off Laugavegur for quieter cafes and lower prices.

Why Visit Laugavegur Street in Reykjavík

A single walk along Laugavegur Street in Reykjavík remains the easiest way to feel the city’s pulse. Between the shops, the street art, and the food, a single afternoon never feels like enough. Staying nearby, such as at Exeter Hotel by the Old Harbor, puts the whole street within easy reach.