Laugavegur: Reykjavík’s Must-Visit Shopping Street
Looking for the best shopping street in Reykjavík? Go to Laugavegur.
Iceland is known for nature, but Reykjavík is a great place to see local life. Laugavegur, the city’s main shopping street, is home to cafés, souvenir shops, and Icelandic design stores. You’ll also see street art and older wooden buildings next to newer stores.
This blog will show you the key stops along Laugavegur, so you don’t waste time. It covers where to eat, where to shop, and what to see nearby, including small galleries and museums. You’ll also learn a short history of the street, which helps explain why the area looks and feels the way it does today.
History of Laugavegur Street
Laugavegur stretches through the center of downtown Reykjavík. The name has a unique history. It translates to "The Wash Road" or "Water Road."
Long before it became a shopping street, Icelandic women walked this route carrying heavy bundles of laundry to Laugardalur hot spring. Clothes were washed in the hot geothermal water, giving the street both its name and its place in everyday life.
Today, the vibe is very different. It is one of the oldest streets in the city. But now, it is lined with trendy boutiques, cozy cafes, and vibrant street art.
It’s a street that changes with the time of day. In the morning, it smells of fresh bread from Sandholt Bakery. At night, music spills out from the many restaurants and bars.
Shopping: How to Find High-Quality Products
Walking along Laugavegur shopping street, you will see a wide mix of stores, from souvenir shops to small local boutiques. Many shops sell simple gifts like stuffed animals, fridge magnets, and books. For the best value, choose Icelandic-made items, such as wool goods, local ceramics, and prints by local artists, which make excellent souvenirs worth bringing home.
Icelandic-Designed Fashion
Icelandic design is shaped by the weather, nature, and practicality. Many shops sell items that are truly designed in Iceland. Kiosk is a good starting point. This small shop is run by local fashion designers and focuses on limited-run pieces from Icelandic brands.
Another option is 66°North, an Icelandic outerwear brand with a long history of making gear for harsh conditions. The brand started by making clothes for fishermen and now mix of history with modern outdoor style. Prices are high, but the quality is matched to keep you warm during winter.
Vintage and Wool
Lopapeysa are common in Reykjavík. This traditional Icelandic wool sweater is typically made from local wool and features a patterned yoke.
If you are interested in purchasing one, hand-knit versions are available at the Handknitting Association of Iceland. It’s located just off Reykjavik's main shopping street.
At this shop, locals knit the sweaters by hand, and patterns and colors vary from piece to piece. The thick wool they're made of makes them a practical choice for cold weather.
If you want second-hand clothing, visit Spúútnik on Laugavegur. It carries vintage and used items, and its selection changes often.
Art and Home Finds
Laugavegur has small art galleries where you can browse prints, paintings, and ceramics by local artists. Many pieces feature Reykjavík scenes, Icelandic landscapes, or simple geometric patterns.
Hrim is a home goods shop specializing in Nordic-style design. The products are practical and made for everyday use, such as kitchen tools, candles, and textiles. These can be a useful alternative to standard souvenir items.
A taste of the “Wash Road”
Exploring a shopping street in Reykjavik naturally leads to hunger. Along Laugavegur, once known as the old Wash Road where clothes were carried to hot springs, food has become part of the experience. Today, this stretch of downtown Reykjavík mixes street art, small art galleries, and inviting cafés between souvenir shops and boutiques.
Morning Treats
Start your day at Sandholt Bakery, a family business that has been a favorite with locals for years. Try the fresh sourdough, a Danish pastry, or some handmade chocolates. It’s a relaxed spot where you can sit back and watch the street come to life.
Brauð & Co. is another popular spot on Laugavegur in Reykjavík. You’ll probably notice the smell before you see it. The building, covered in graffiti, stands out, and the cinnamon buns are usually gone fast. Grab one while it’s warm, then keep exploring Laugavegur’s restaurants, bars, and creative corners.
Lunch and Dinner
For lunch, try a comforting bowl of kjötsúpa, Iceland’s traditional meat soup. Many cafés serve it, such as Icelandic Street Food on Laugavegur. It’s a great way to warm up after exploring the city’s oldest streets and colorful street art.
If you want more options, walk to the end of the street and visit Hlemmur Mathöll. It was once a bus station, but now it’s a lively food hall. The atmosphere is friendly and relaxed, and you’ll notice delicious smells from every corner. You can find tacos, pizza, Vietnamese food, and other meals.
It’s a comfortable spot to relax after exploring Laugavegur, especially if you’re with friends or family. Everyone can pick what they like, then sit together and share stories from a day spent wandering the shopping street in Reykjavik.
Culture and Street Art
Laugavegur offers more than just shopping. As you walk along, it feels like an open-air gallery, with new sights appearing as you go. The walls between cafés and shops invite you to stop and enjoy the details.
Colorful murals cover the sides of buildings. The art ranges from playful to thoughtful, bringing warmth and personality, especially during gray winter days. Together, these pieces reflect Icelandic nature, humor, and daily life.
Past the murals, you’ll come across small cultural spots nearby. One of the most surprising is the Icelandic Punk Museum, located underground in what used to be a public toilet. The museum tells the story of Iceland’s punk scene. While the location is unusual, the visit is both interesting and memorable.
The Nightlife Scene
When the sun goes down, Laugavegur comes to life. This is the center of the famous Reykjavik nightlife.
On weekends, the street is busy until very late. Locals call it the "runtur." It’s a bar crawl where friends move from place to place. There are quiet pubs for a beer. There are dance floors with DJs. There are cozy wine bars.
If you like craft beer, look for Kaldi Bar. It serves beer brewed in North Iceland. The atmosphere is warm and friendly. If you like movies, visit the Lebowski Bar. It is themed after the movie "The Big Lebowski." It’s kitschy and fun.
Where to Stay on Laugavegur
To experience it all, you should stay right on the street. You will be steps away from the shops and restaurants. We have two perfect locations for you.
Center Hotels Laugavegur embodies the spirit of the street: modern, stylish, and fun. It has 102 bright, comfortable rooms. The location is unbeatable. You are right in the middle of the action.
Guests love the casual vibe here. It’s perfect for travelers who want to explore Laugavegur all day and relax at night. Inside the hotel, you will find Lóa Bar & Bistro, a great place to eat. The menu mixes Icelandic ingredients with Mediterranean flavors.
If you prefer history, the Center Hotels Skjaldbreið is for you. Located in one of the most impressive buildings on Laugavegur. It has a classic charm that feels intimate and welcoming.
There are only 33 rooms here that feel like a home away from home. You get personal service and a cozy atmosphere. Step outside, and you are on the main shopping street in Reykjavik. Step inside, and it is peaceful and quiet. It offers free coffee and tea for guests all day. It’s a lovely touch after a cold walk.
Why This Street Matters
Laugavegur Reykjavík is shaped by everyday life rather than retail trends. It grew naturally over time, which gives it a lived-in character you feel as soon as you start walking.
In winter, geothermal heating runs beneath parts of the pavement. The system keeps the street clear of snow and quietly reflects its origins as the old Wash Road, where people once carried laundry to nearby hot springs.
The architecture tells another layer of the story. Timber houses from earlier centuries stand beside modern buildings, showing how the street has adapted without erasing its past.
Most of all, Laugavegur brings many sides of Reykjavík together in one place. You can shop for a wool sweater, sit down for a thoughtful meal, or hear live music, all within a short walk. It feels less like a destination and more like a snapshot of the city itself.
Practical Tips for Visitors
Downtown Reykjavík is compact and easy to explore on foot. You can visit the main shopping streets and nearby neighborhoods without a car, making your visit really convenient.
Plan your shopping, as most stores close by 6:00 pm. Restaurants and bars stay open much later, giving the city a different feel in the evening.
If you visit in winter and the sky is clear, you might see the Northern Lights above the street. This can make an ordinary walk feel special.
When you shop, remember that purchases over 6,000 ISK are eligible for a tax-free receipt. Just ask at the counter; it only takes a moment and can help you save money. Take your time exploring streets in Reykjavík, where you’ll find daily life and local culture side by side.
Frequently Asked Questions (FAQ)
What is the main shopping street in Reykjavik?
Laugavegur is the main shopping street in downtown Reykjavik. You'll find plenty of shops, cafes, and bars along it.
Is Laugavegur a pedestrian street?
Some sections of the street are closed to cars, especially during the summer. This makes it easy and safe to walk around.
Is shopping on Laugavegur expensive?
There’s a range of prices on Laugavegur. You’ll see both high-end designer stores and places selling affordable souvenirs or vintage finds.
When do shops on Laugavegur close?
Most shops close by 6:00 PM on weekdays, and weekend hours are often shorter. Restaurants, however, usually stay open late.
Where can I park near Laugavegur?
Street parking is limited and paid (Zone 1). It’s often easier to use nearby parking garages like Vitatorg or Traðarkot, which are a short walk from Laugavegur.