Fáskrúðsfjörður is located in the East part of Iceland between Stöðvarfjörður village, about 27 kilometers south and Reyðarfjörður to the north (20 km away if going through Fáskrúðsfjarðargöng tunnels). Fáskrúðsfjörður is a part of the municipality Fjarðarbyggð with inhabitants of around 650 people.

There is a lot of fishing in Fáskrúðsfjörður and the village is located a short distance to good fishing waters. Fáskrúðsfjörður was the centre for France fishing man, fishing in the waters from east Iceland in the 18th and the 19th century. They built a hospital there for the French fisherman called Franski spítalinn (The france hospital) now it has been rebuild as a beautiful hotel.

Fáskrúðsfjörður is quite big like most Fjords in the east part of Iceland surrounded by steep mountains on both sides. By building a tunnel through the mountains between Fáskrúðsfjörður and Reyðarfjörður (5,850 m long) in 2005 made a big difference, it made the distance much shorter as well as providing better safety for driving there in winter.

Outside from Fáskrúðsfjörður fjord is the island Skrúður a big rock with a lot of seabirds during summer. If you drive the old road around Vattarnes peninsula you will have a good view to the island. There is a rich spirit live in Fáskrúðsfjörður during summer and there you can find good service like accommodation, restaurants and shops.