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Sunday, 18 October 2026 Icelandic stories. Global audience.
Icelandic Life

Stykkishólmur’s harbour town story spans trade, emigration and cultural ties

A centre for fishing and trade, Stykkishólmur in western Iceland connects past and present through its trading history, links to North America and annual festival celebrating Danish heritage.

Beach and cliffs at Arnarstapi on Snæfellsnes
File photo.

Stykkishólmur is a harbour town found on the northern side of the Snæfellsnes peninsula in western Iceland. Its identity has long revolved around the sea: fishing and tourism remain central to daily life, and the natural harbour here once made Stykkishólmur one of the country’s earliest trading posts.

Historic trade and emigration

Records show Stykkishólmur was already trading by the mid-16th century, even before a formal Danish–Icelandic Trade Monopoly reshaped Iceland’s economy in the 1600s. The strategic position on the Breiðafjörður fjord attracted merchants and later ferry services, the Baldur passenger ferry still connects locals and visitors with the Westfjords and the island of Flatey today. Several distinctive wooden houses from the 19th century survive in the town centre, witnesses to these busy trading days. Notable among them is the Norwegian house, built by Árni Thorlacius in 1828, which now hosts the local museum, and Egilsenshús, constructed in 1867 for a Danish merchant.

The town’s port also played a quiet but significant role in the era of mass emigration from Iceland to North America. In the late nineteenth and early twentieth centuries, around 500 people left through Stykkishólmur’s harbour, with a peak wave in 1887 when over 70 departed in a single year. One emigrant, Sveinn Kristján Bjarnason, later known as Edgar Holger Cahill, was born nearby and would eventually become influential in the United States, directing the Federal Art Project during the New Deal.

From saga sites to local traditions

Stykkishólmur’s name comes from Stykkið, meaning “the piece,” a small island located just off the harbour. Nearby rises Helgafell, a mountain with deep roots in Icelandic storytelling, as it is the final resting place of Guðrún Ósvífursdóttir, a renowned character from the medieval sagas.

Today, seasonal rhythms shape life in Stykkishólmur. Fishing sustains many families, while the ferry brings travellers during summer. The town’s former library now serves as a public hall, featuring an installation by American artist Roni Horn. Each August, residents hold Danskir dagar (“Danish days”), a festival honouring their longstanding connections with Denmark, a tradition since 1994.

Sports are part of community life as well. The local club, Snæfell, bears the name of the Snæfellsjökull glacier. While sports are varied, basketball is especially popular among residents.

Stykkishólmur’s legacy even appears in literature and film. The town was depicted as Nuuk, Greenland for scenes in “The Secret Life of Walter Mitty” (2013), featured in novels, and is referenced in the military thriller “Red Storm Rising.” Over the years, it has also been named as a place of interest by chess legend Bobby Fischer.

Sources