Laugarvatn: Where the Lake Steams and the Hamlet Never Quite Sleeps
Along the shore of a quiet lake on the Golden Circle, a plume of steam rises from the ground day and night. Water near the edge sometimes approaches 100°C. Only 147 people live here, sandwiched between geothermal baths and the lava fields that border the settlement.
Laugarvatn has long been a place you pass through, somewhere people once boiled eggs in the warm sand rather than a destination in its own right. That is still somewhat true. And that is exactly what makes it a distinct stop.
A destination made for you?
You will like Laugarvatn if you want a Golden Circle stopover that does not feel like a packed parking lot. It is a village for travelers who want to soak their feet in natural hot water without the crowds of the Blue Lagoon, and for those who appreciate raw landscapes over polished resort infrastructure.
Conversely, if you are looking for nightlife, diverse dining, or a bustling town, look elsewhere. Laugarvatn can be seen in half a day, sometimes less.
Good fit for:
- A thermal break along the Golden Circle route
- Fans of raw geothermal nature
- A quiet stay far from Reykjavik
Not a good fit for:
- Anyone looking for nightlife or a dense cultural scene
- A multi-day stay based entirely on site
Priced like the rest of Iceland, neither more nor less
Iceland remains expensive, and Laugarvatn is no exception. But compared to Reykjavik or the heavy tourist hubs of the south, prices remain reasonable for a quick stay.
| Expense | Range |
|---|---|
| Night in a simple guesthouse | 80 to 110 € |
| Night in a comfortable hotel | 150 to 220 € |
| Quick bite | 10 to 15 € |
| Sit-down restaurant meal | 25 to 35 € |
| Geothermal bath admission | about 45 € |
Estimated rates subject to change
Practical realities: what to know before you go
Laugarvatn has no airport or train station. You arrive by car or on an organized tour from Reykjavik. The village itself can be walked across in a few minutes, as most of the draw is outside between the lake and the rolling hills.
English is spoken everywhere, and safety is not an issue. On the other hand, dining and shopping options are minimal, so it is best to pack your own food or make a stop in nearby Selfoss if you want more variety.
The core experience in Laugarvatn
Laugarvatn Fontana: the baths on the lake
This is the main reason to stop here. Laugarvatn Fontana offers geothermal baths built right on the lakefront, featuring several pools at different temperatures, natural steam saunas, and a dark volcanic sand beach where you can plunge straight into the lake after a hot soak.
The standout feature here is the daily baking demonstration of rye bread (rúgbrauð) buried in the hot sand for 24 hours. You can sample it right there, still warm, slathered with butter.
Friendly tip: come in the late afternoon rather than mid-afternoon, when the Golden Circle tour buses are heading back to Reykjavik. The atmosphere quiets down significantly.
The lake and surrounding trails
Lake Laugarvatn itself deserves some attention beyond the baths. Its shores offer several quiet viewpoints, and a trail circles the water on foot or by bike, looking out over the surrounding volcanic hills.
In winter, the lake freezes over partially, creating a striking contrast with the steam vents that keep smoking right at the water's edge.
The immediate surroundings: between Geysir and Gullfoss
Laugarvatn also draws value from its geography. About 20 minutes away by car sit the Geysir geothermal area with its famous Strokkur spout, along with the roaring Gullfoss waterfall. Many travelers use the village as a base to explore these two spots without dealing with the daytime crowds.
- Geysir and its active geysers, about 20 minutes away
- Gullfoss, the golden waterfall, about 30 minutes away
- Þingvallavatn and Þingvellir National Park, about 25 minutes away
Where to eat and drink in Laugarvatn?
Options remain modest, matching the scale of the village. The restaurant at the Fontana complex serves simple Icelandic dishes with a view of the water. For more variety, the small town of Selfoss sits about 30 minutes away with a wider spread of cafes and restaurants.
Where to sleep in Laugarvatn and nearby?
The village holds a few family-run guesthouses and one lake-facing hotel, enough for a night or two. Travelers who prefer more lodging choices can stay in Selfoss or directly in Reykjavik, roughly an hour away, treating Laugarvatn as a daytime Golden Circle stop instead.
How to get to Laugarvatn?
Driving remains the easiest option, roughly 1 hour from Reykjavik via Route 37. No regular public bus lines serve the village directly, but several organized day tours departing from Reykjavik include a stop at Laugarvatn Fontana on their Golden Circle routes.
How to get around Laugarvatn?
The village is entirely walkable, taking only a few minutes to cross on foot. To explore the surrounding region, however, a rental car is practically essential since no public transit network connects the neighboring sites.
When to go to Laugarvatn?
Summer (June to August) brings long daylight hours and easy road conditions, along with heavier tourist traffic on the Golden Circle. Spring and autumn let you enjoy the baths with far fewer people around.
Winter brings a sharp contrast between snow, lake ice, and bath steam, provided you are comfortable driving on roads that can get slick.
