Long wooden building with sod roof, large deck & Iceland flag flying, on rolling grassland with farm equipment, at dusk.
Wooden guesthouses with sod roofs in a grassy field with old farm equipment in front, on a sunny day at Fjalladyrd Guesthouse in Iceland.
Modern guest room with double bed, wooden desk, wooden accent wall & ceiling, window, door, 3 teal walls, 2 peach armchairs & round mirror.
Living room with wooden walls & ceiling, pendant lamps, pink & teal couches & chairs, wood stove, recessed lights & pallet coffee table.
Aerial view of 6 slender grey buildings, 3 on each side of a wider one, with turf roofs & parking lot with 2 cars out front.
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Fjalladyrd Guesthouse

Perched atop grassy farmland in remote Modrudalur, the Fjalladyrd Guesthouse welcomes travelers to the highest inhabited point in Iceland, at 1,539 feet. This working farm in Iceland’s eastern interior evokes a sense of simpler times, with its grazing sheep, traditional farming operations and buildings covered in traditional sod roofs.

Guests can enjoy “Fjalladyrd,” or “mountain beauty,” via sweeping sight lines of the surrounding highlands north of Vatnajokull Glacier. On clear days, snowcapped summits of the Kverkfjoll Mountains come into view.

Common Areas

Knotty pine covers much of the property’s interiors, lending both a modern and cozy feel. The log fireplace invites guests to relax and take in the surrounding scenery. And touches of the farm, such as wooden pallet coffee tables, are a reminder of the location’s history as one of the earliest settled areas in Iceland. Guests may even take reminders home from the giftshop, such as woolen mittens, shawls and sweaters.


The onsite coffeehouse and restaurant, Fjallakaffi, features freshly made foods partially sourced from the farm itself. Enjoy home-baked cakes, delicious waffles and cream, Icelandic donuts called “kleinur,” and local favorites like hearty lamb and vegetable soup. Sip a warming cup of coffee or cooling glass of beer at inviting wooden tables beside large view windows. A breakfast buffet and ala carte dinner menu are available daily.

Nearby Attractions

The farm itself offers numerous marked walks and hikes, as well as fat tire bike rentals. Many of Iceland’s natural wonders are within driving distance from the Fjalladyrd Guesthouse, including: Lake Mývatn, the Dettifoss waterfall, Ásbyrgi Canyon, the Askja caldera, the glacier and hot springs of Kverkfjöll and the Stuðlagil ravine with its basalt rock formations and bright green water. Many trips are accessed by 4-wheel-drive vehicles. Custom tours are also available.


Two traditional, side-by-side turf guesthouses accommodate seven guests each in single or double rooms with private ensuite bathrooms. These buildings offer a traditional set up with modern conveniences, including optional kitchen facilities. The upper floor features closeted single beds hemmed in with privacy curtains, for a classic experience; the lower floor offers a double bed.

The newer Bakki rooms offer additional accommodation with a touch of luxury. All rooms feature a modern Scandinavian mix of wood and stone. Private bathrooms are equipped with glass showers and stocked with bulk toiletries. Also on site are economy rooms and a campground, each with shared facilities.

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