Reykjavík Joins Seltjarnarnes Peninsula, Old Harbour, Hafnarfjörður, Akureyri, Þingvellir, and Others to Celebrate Months of Festivities as the Top Christmas and New Year Travel Destinations in Iceland: Everything You Need to Know

Published on December 4, 2025

Iceland’s top Christmas and New Year destinations—Reykjavík, Seltjarnarnes Peninsula, Old Harbour, Hafnarfjörður, Akureyri, and Þingvellir—offer unforgettable festivities, blending fireworks, traditions, and nature’s beauty. From Reykjavík’s vibrant, fireworks-filled streets to the serene, tranquil views of the Seltjarnarnes Peninsula, Iceland provides a diverse range of experiences to suit every traveler’s holiday desires. Reykjavík, as the epicenter of Iceland’s explosive New Year’s Eve celebrations, dazzles with its 360-degree pyrotechnic displays and lively community bonfires. For those seeking a quieter, intimate setting, the Old Harbour offers luxurious boat cruises to enjoy the fireworks from the water, while Hafnarfjörður embraces a cozy, family-friendly atmosphere with its traditional Christmas Village and bonfires.

Venture further into Iceland’s breathtaking landscapes, and you’ll find Akureyri, where snowy mountains and the Eyjafjörður fjord provide a stunning backdrop for fireworks and a chance to witness the Northern Lights. In Þingvellir, the Golden Circle’s crown jewel, nature lovers can celebrate the New Year surrounded by awe-inspiring scenery, with the Northern Lights and distant fireworks setting the stage for a magical experience. Whether you’re looking to immerse yourself in Icelandic traditions, witness natural wonders, or simply enjoy the warmth of a community celebration, these destinations promise a holiday season unlike any other.

Reykjavík: The Heart of Iceland’s Explosive New Year’s Eve Celebration

Reykjavík is the epicenter of Iceland’s unique New Year’s celebrations, where locals set off thousands of fireworks, creating a mesmerizing 360-degree spectacle. The show peaks after the national TV comedy show Áramótaskaupið, and it’s followed by hours of pyrotechnic brilliance. For an exclusive experience, head to the hill near Hallgrímskirkja Church or Perlan Museum for panoramic views. Bonfires (brennur) are lit around the city, where locals gather to sing, dance, and celebrate the arrival of the New Year.

Festival Guide:

• Christmas & New Year’s Eve: Reykjavík hosts the largest and most impressive fireworks display, with public bonfires and community gatherings.
• Best Viewing Spots: Hallgrímskirkja Church hill, Perlan Museum observation deck.

Main Attraction: Hallgrímskirkja Church, Perlan Museum, Harpa Concert Hall.
Nearby Airport: Keflavík International Airport (KEF).
Hotels: Hotel Borg, Canopy by Hilton Reykjavik City Centre.
Hotel Deal: Get 20% off stays at Canopy by Hilton when booking early for the holiday season.

Seltjarnarnes Peninsula: A Hidden Gem for Fireworks and Northern Lights

Seltjarnarnes offers a stunning, lesser-known spot to watch Reykjavík’s spectacular fireworks show. Located on the western tip of the capital region, this area provides great views across Faxaflói Bay, with fireworks reflecting off the water. This spot also offers reduced light pollution, making it ideal for witnessing the Northern Lights. On a clear night, you may see the Aurora Borealis dancing above the city’s firework display, creating a truly magical sight.

Festival Guide:

• Christmas & New Year’s Eve: Enjoy the fireworks from a tranquil vantage point, with an excellent chance to see the Northern Lights.
• Bonfires: A local bonfire tradition is held here, adding a warm, community-focused atmosphere.

Main Attraction: Grotta Lighthouse, Seltjarnarnes Nature Reserve.
Nearby Airport: Keflavík International Airport (KEF).
Hotels: Hotel Frón, Radisson Blu 1919 Hotel.
Hotel Deal: Book a stay at Radisson Blu 1919 and enjoy a 15% discount along with a complimentary Northern Lights tour.

Reykjavík Old Harbour: Fireworks from the Comfort of a Luxury Cruise

For a more luxurious New Year’s Eve experience, hop on a boat cruise from Reykjavík’s Old Harbour. These cruises offer unobstructed, wide-angle views of the entire fireworks display across Faxaflói Bay, combined with a festive party atmosphere. Enjoy champagne, music, and a comfortable setting while watching the thousands of fireworks reflect off the calm waters. This experience offers a unique, peaceful way to enjoy Iceland’s signature fireworks celebration away from the crowds.

Festival Guide:

• Christmas & New Year’s Eve: Experience the fireworks in comfort aboard a boat with champagne and music.
• Best Experience: Firework cruise with a view of the fireworks on the water, avoiding the crowds.

Main Attraction: Harpa Concert Hall, Sun Voyager sculpture, Reykjavík’s Old Harbour.
Nearby Airport: Keflavík International Airport (KEF).
Hotels: Grand Hotel Reykjavík, Hilton Reykjavik Nordica.
Hotel Deal: Stay at Grand Hotel Reykjavík and enjoy a 10% discount with a New Year’s Eve cruise package.

Hafnarfjörður: A Quieter, Family-Friendly Icelandic New Year

Hafnarfjörður, just outside of Reykjavík, offers a more local, family-friendly New Year’s celebration. Known for its Christmas Village (Jólaþorpið), the town embraces Icelandic folklore and traditions. It hosts its own bonfires, where residents sing and celebrate together before the fireworks. The smaller scale of the fireworks display here makes it perfect for those looking to experience Icelandic traditions away from the bustling crowds of the capital.

Festival Guide:

• Christmas & New Year’s Eve: Enjoy community bonfires and fireworks with a more local, quieter atmosphere.
• Family Atmosphere: Ideal for families looking for a traditional Icelandic celebration.

Main Attraction: Hafnarfjörður Christmas Village, Elf Garden.
Nearby Airport: Keflavík International Airport (KEF).
Hotels: Hotel Hafnarfjörður, Viking Village.
Hotel Deal: Book a stay at Hotel Hafnarfjörður and receive 15% off for New Year’s with access to the Christmas Village.

Akureyri: Iceland’s Capital of the North for a Cozy, Dramatic New Year

Akureyri, Iceland’s second-largest town, offers a smaller, yet stunning New Year’s celebration. The fireworks display, set against the backdrop of snow-capped mountains and the Eyjafjörður fjord, creates a breathtaking scene. Due to its location in North Iceland, Akureyri is also one of the best places to see the Northern Lights. Bonfires and community celebrations add to the authentic Icelandic experience, making it a fantastic destination for those seeking a quieter, scenic New Year.

Festival Guide:

• Christmas & New Year’s Eve: Enjoy fireworks set against a dramatic landscape, with a chance to see the Northern Lights.
• Tradition: Participate in bonfire celebrations with locals.

Main Attraction: Eyjafjörður Fjord, Akureyri Church, Botanical Gardens.
Nearby Airport: Akureyri Airport (AEY).
Hotels: Hotel Kea, Icelandair Hotel Akureyri.
Hotel Deal: Stay at Icelandair Hotel Akureyri and enjoy a 20% discount for New Year’s with a Northern Lights wake-up call.

The Golden Circle: New Year’s Eve Under the Northern Lights

The Golden Circle, which includes Þingvellir National Park, Gullfoss, and Geysir, is perfect for those who want to celebrate New Year’s surrounded by Iceland’s dramatic landscapes. With minimal light pollution, this area offers unparalleled opportunities to see the Northern Lights. For a truly special experience, spend the evening at a countryside hotel like Hotel Rangá, which offers a New Year’s Gala Dinner with the option to wake up and view the Aurora Borealis in the morning.

Festival Guide:

• Christmas & New Year’s Eve: Celebrate under the stars with the Northern Lights as your backdrop, away from the city’s fireworks.
• Best for Nature Lovers: The Golden Circle offers the best natural setting for seeing the Aurora Borealis and distant fireworks.

Main Attraction: Þingvellir National Park, Gullfoss Waterfall, Geysir geothermal area.
Nearby Airport: Keflavík International Airport (KEF).
Hotels: Hotel Rangá, Fosshotel Hekla.
Hotel Deal: Book a stay at Hotel Rangá and receive a 25% discount on a New Year’s Eve package that includes a Northern Lights wake-up service.

Iceland’s top Christmas and New Year destinations—Reykjavík, Seltjarnarnes Peninsula, Old Harbour, Hafnarfjörður, Akureyri, and Þingvellir—offer unforgettable festivities, blending fireworks, traditions, and nature’s beauty.

Conclusion

Reykjavík, Seltjarnarnes Peninsula, Old Harbour, Hafnarfjörður, Akureyri, Þingvellir, and other top Christmas and New Year travel destinations in Iceland offer the perfect blend of breathtaking fireworks, cherished traditions, and stunning natural landscapes. These locations, each with its own unique atmosphere, provide a wide range of festive experiences, from lively city celebrations to serene, nature-filled getaways. Whether you’re drawn to the vibrant energy of Reykjavík or the peaceful charm of the Golden Circle, Iceland’s holiday season promises an unforgettable experience for every traveler.