Reyðarfjörður town is located by Reyðarfjörður fjord in the East part of Iceland, between Fáskrúðsfjörður about 20 kilometers away to the south and Eskifjörður about 16 kilometers to the north. Inhabitants are around 1100. Reyðarfjörður fjord is the longest and widest of the fjord in East Iceland about 30km long.
The town has developed a lot for the past 20 years both because of the aluminium factory (Fjarðarál) nearby but as well with increasing interest of tourists in Iceland. Both having positive impact on the population in the area with more employments to offer than before.
There was a British military base in Reyðarfjörður during the second world war and now there is a museum there related to the military operation there. Something people should visit to see what was going on in Iceland during the second world war.
Reyðarfjörður has a small shopping centre with restaurants and shops called Molinn. There are some restaurant and a café in Reyðarfjörður as well as Hostel, Guesthouse and a camping ground. It is possible to go fishing at Andapollur the local pond or go hiking at Mt. Grænafell. There is a marked path that leads to the mountain from Fagridalur valley. The road Norðfjarðarvegur (road number 92) (also called Fagridalur) goes from Reyðarfjörður to Egislsstaðir town about 35 km long.