About

Ólafsfjörður is a fishing town located at the head of Ólafsfjarðarmúli fjord on the Tröllaskagi Peninsula in North Iceland. The town has a population of approximately 800 and is surrounded on three sides by steep mountains rising over 1,000 metres. For much of its history, Ólafsfjörður was one of Iceland's most isolated settlements. Road access was difficult and unreliable, especially in winter. In 1991, the 3.4 km Múlagjúfur tunnel opened, providing direct access through the mountain for the first time. This single-lane tunnel operated with a traffic light system until 2010 when the newer Héðinsfjarðargöng tunnel system opened, connecting Ólafsfjörður and Siglufjörður via two tunnels totaling 11 km. The town's economy is based on fishing and fish processing, though tourism has grown. Ólafsfjörður is known for excellent skiing (Tindaöxl ski area), hiking, and mountain biking. The surrounding peaks offer dramatic alpine scenery rare in lowland Iceland. The town has a swimming pool, museum (focusing on fishing and local history), accommodation, and basic services. It remains quiet and off-the-beaten-path despite improved road access.

📖 Story

For decades, Ólafsfjörður could only be reached by a long detour around the mountains or by boat. In winter, heavy snows frequently cut the town off entirely. In 1991, Iceland opened the Múlagjúfur tunnel — 3.4 km bored straight through the mountain. It was single-lane, unlit, and required drivers to take turns entering from each end. In 2010, a second tunnel opened (Héðinsfjarðargöng), connecting Ólafsfjörður directly to Siglufjörður. The tunnels transformed the town from isolated to accessible — but it remains quiet, dramatic and beautifully remote.

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