New Year’s Eve in Iceland is something else entirely. Picture huge bonfires, fireworks exploding in all directions, and locals doing it all with the calm efficiency of people who’ve lit things on fire in the snow before. If you’re heading to Reykjavik for NYE and want to balance the festivities with Iceland’s natural beauty, this 4-day winter itinerary covers everything from hot springs to hot dogs — plus where to be when midnight strikes.

This itinerary is based on my trip to Reykjavik for New Year’s Eve 2016/2017. While some places and timings may have changed, it’s been updated for 2025 with practical suggestions based on the same festive energy.

Where We Stayed: Hotel Frón, Reykjavík

During our time in Reykjavík, we stayed at Hotel Frón, a charming and modern hotel nestled right on Laugavegur, the city’s main shopping street.  Its unbeatable location placed us within walking distance of top attractions like Hallgrímskirkja Church, Harpa Concert Hall, and the vibrant Reykjavík Harbour.

Day 1: Arrival, Northern Lights & Dinner in Style

Afternoon:

• Arrive at Keflavik Airport and head to Reykjavik via Flybus+, which drops you at or near your hotel.

• Stop at a supermarket to stock up on snacks and breakfast bits (they may close early on NYE weekend).

Evening:

• Dinner at Grillmarkaðurinn (The Grillmarket) – We enjoyed a fantastic dinner at Grillmarkaðurinn (The Grill Market), one of Reykjavík’s top dining spots. Set in a cosy, rustic space, the restaurant focuses on locally sourced Icelandic ingredients.

• Northern Lights tour (if conditions are good): Book your northern lights tour for your first night to allow time to rebook if needed.

Day 2: Waterfalls, Black Sand Beaches & Glacier Views

Morning to early evening:

• Reyksjavík Roaster – Known for its commitment to quality, the café sources beans directly from farmers, roasts them on-site, and serves expertly brewed coffee in a warm, inviting atmosphere. The eclectic mix of vintage furniture and the aroma of freshly ground coffee made it the perfect spot before our day’s adventures.
• South Coast tour with IG Tours –  picked up directly from Hotel Frón, the minibus tour took us through some of Southern Iceland’s most iconic sights, including the stunning Seljalandsfoss waterfall, the dramatic black sands of Reynisfjara beach, the charming village of Vík, and the striking Sólheimajökull glacier outlet. Options for similar tours are available through companies like Reykjavik Excursions or Arctic Adventures.

Dinner:

• Get dropped off for a dinner with fresh local seafood.

Nightcap:

• Kaffibarinn or Lebowski Bar for cocktails — both walkable from the city centre.

Day 3: Blue Lagoon, Hot Dogs & Another Chance at the Lights

Morning:

• Bus from Reykjavik to the Blue Lagoon (book in advance).

• Choose the Comfort Package for towel, drink, and silica mud mask — bring flip-flops and conditioner.

Afternoon:

• Return to Reykjavik.

• Grab a hot dog at Bæjarins Beztu Pylsur (“one with everything” is the way to go).

• Pop into Cafe Babalú for cheesecake and quirky charm.

Evening:

• If you didn’t catch the aurora on night one, head out again on a Northern Lights tour.

Day 4: New Year’s Eve in Reykjavik

Morning:

• Do a relaxed DIY walking tour of Reykjavik:

  • Prime Minister’s Office

  • Lake Tjörnin

  • Parliament building

  • Harpa Concert Hall

  • Sun Voyager sculpture

  • Hallgrímskirkja tower for panoramic views

Midday:

• Explore Kolaportið Flea Market (open weekends), then brunch at Snaps — popular, so go early.

Afternoon:

• Relax, nap, or recharge. NYE is a late one.

Evening:

• Dinner at Tapas Barinn (book well in advance)

• Head to one of Reykjavik’s public bonfires — e.g. Ægissíða
  Bonfires typically start around 8pm and are a big part of Icelandic NYE tradition.

Midnight:

• Watch Áramótaskaupið (satirical New Year’s Eve sketch show) with locals

• Head to Öskjuhlíð hill (near Perlan) for an epic view of the fireworks — they go off everywhere, all at once, for hours

• Finish the night dancing at Austur nightclub or just bar-hop your way home

Day 5: Departure (and Recovery)

• Grab breakfast at Bergsson Mathús or your hotel before catching your Flybus back to the airport.

Optional Ideas

• Perlan Museum & Observation Deck – Learn about Icelandic nature and enjoy panoramic city views.

• Nauthólsvík Geothermal Beach – A city beach combining cold seawater with a man-made lagoon and a hot tub heated to 38°C year-round.

• Sky Lagoon (not Blue Lagoon) – A luxurious oceanside geothermal spa experience just minutes from downtown.

• Ásmundarsafn Sculpture Museum – For art lovers interested in Icelandic modernist sculpture in a unique architectural setting.

• FlyOver Iceland – A fun, immersive flying ride through Iceland’s dramatic landscapes

More Popular Day Tours from Reykjavik

• Golden Circle Tour – Visit Þingvellir National Park, Gullfoss waterfall, and the Geysir geothermal area; some tours include Kerið crater or geothermal spa stops.

• Snæfellsnes Peninsula Tour – A scenic day trip to volcanic landscapes, black beaches, and the iconic Kirkjufell mountain—known as “Iceland in Miniature.”

• Thórsmörk Super Jeep Tour – Off-road adventure with river crossings and hiking through rugged valleys between glaciers.

• Whale Watching Tour – Departing from Reykjavik’s Old Harbour, these tours offer the chance to see whales, dolphins, and seabirds.

• Northern Lights Tour (winter only) – Guided nighttime excursions outside the city to spot the aurora borealis in optimal viewing conditions.

• Inside the Volcano Tour – A rare chance to descend into the colorful magma chamber of the dormant Thrihnukagigur volcano.

Final Thoughts

This itinerary is ideal if you’re spending 4–5 days in Iceland over New Year’s and want to mix natural wonders with festive fun. Pack layers, book key things in advance (especially restaurants and tours), and keep your plans a little flexible in case of weather changes.

See more of Iceland:

• Blue Lagoon Iceland: What to Know Before You Visit
• Chasing the Northern Lights in Iceland
• Iceland Packing List for Winter