Ólafsfjörður Is a fishing town in the North of Iceland, in Eyjafjörður fjord. The town located between Dalvík, about 17 kilometers to the south and Siglufjörður town about 17 kilometers to the north. Residents of Ólafsfjörður are around 800 people.
The town grew up fast around 1950, when the herring was filling the ocean north of Iceland, bringing a lot of people from other parts of the country to the north to make money and to have fun. Since then Ólafsfjörður has been one of the biggest fishing towns in Iceland. Tourism has been growing there for the past years with new tunnels through Ólafsfjarðarmúli mountain, through Þverfjall mountain and Hestskarðshnjúk mountain to the north of Siglufjörður town. These tunnels have made transportation much easier in the north east part of Tröllaskagi peninsula.
The town is located between high mountains on two ways in a narrow valley with a small lake. Ólafsfjörður is a beautiful place with all necessary services including grocery store, bank, post office and gas station. Great place for hiking, bird watching, skiing and heli skiing in winter, with varied range of accommodation and restaurants