Iceland's Folklore and Legends: A Road Trip Through Mythical Sites

From hidden elves to shape-shifting trolls, Iceland’s myths are woven into the land itself — and the best way to experience them is behind the wheel. With the freedom of your own vehicle, you can chase stories through misty lava fields, visit enchanted waterfalls, and even step into the realm of the huldufólk — Iceland’s elusive hidden people.

This self-drive journey is more than just sightseeing. It's a road trip into Iceland’s cultural soul — and we’re here to be your trusted travel companion every mystical mile of the way.

Why a Self-Drive Tour is Perfect for Exploring Icelandic Legends

Hiring a car in Iceland gives you the flexibility to explore the country's lesser-known folklore-rich destinations at your own pace. Whether you're stopping at a haunted waterfall or tracing the path of a mythical sea monster, a self-drive adventure lets you create a personalised itinerary — full of magic, nature, and wonder.

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Dimmuborgir – The Dark Castles of Mývatn

Located in North Iceland, this lava labyrinth is said to be home to trolls and the Icelandic Yule Lads (yes, those mischievous Christmas pranksters). With its twisted rock formations and eerie silence, Dimmuborgir feels like stepping onto another planet — or deep into a Norse fairytale.

Don’t miss: The “Church” rock formation, and nearby Grjótagjá cave — once home to outlaws and now a popular Game of Thrones filming site.

Drive tip: From Akureyri, Dimmuborgir is a 1.5–2 hour drive. A 4x4 is recommended during winter months.
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Álfaborg – The Elf City in Borgarfjörður Eystri

According to Icelandic folklore, Álfaborg (“Elf Rock”) is the home of the Elf Queen. The area is considered sacred, and locals still honour the elves with offerings and careful respect.

Why visit: Hike the trails and soak in the solitude. The surrounding East Fjords offer quiet beauty — perfect for those seeking a truly magical escape.

Local insight: Icelanders often build around elf rocks rather than disturb them. Respect and belief are part of the landscape here.

Reynisfjara & Reynisdrangar – Trolls Turned to Stone

One of the most iconic black sand beaches in Iceland, Reynisfjara is not only stunning — it’s steeped in legend. The towering sea stacks just offshore are said to be trolls who were caught in sunlight while dragging a ship to shore.

Safety first: The waves here are unpredictable. Keep a respectful distance and never turn your back to the ocean.

Nearby stop: Visit Vík for a cosy café break and views of the trolls from another angle.

Snæfellsjökull – The Glacier of Magic and Mystery

Jules Verne’s Journey to the Centre of the Earth begins here — and it’s no coincidence. This glacier-capped volcano is considered one of Earth’s spiritual energy centres. Some say it hides a gateway to another world.

Fun folklore: Icelandic seers and psychics believe Snæfellsjökull emits mystical energy — so don’t be surprised if your GPS acts up.

Drive tip: A great loop road from Reykjavík, especially in summer. Add stops like Djúpalónssandur (black lava beach) and Kirkjufell.

Lagarfljót – Iceland’s Loch Ness

This long lake in East Iceland is home to the Lagarfljótsormurinn — a serpentine sea monster reported since the 14th century. Some say it's still spotted on misty days, slinking beneath the surface.

Local lore: The creature was first seen in 1345, and sightings continue into the modern day.

Nearby gem: Visit the forest of Hallormsstaðaskógur, Iceland’s largest woodland, for a peaceful picnic.

Hafnarfjörður – The Town Built for Elves

Just south of Reykjavík, this seaside town embraces its identity as a hub for the huldufólk. Special tours lead visitors through elf dwellings and rock gardens, and local buildings are often designed to avoid disturbing the hidden people.

Why stop here: It’s a perfect folklore-filled afternoon before heading to the Golden Circle or the Reykjanes Peninsula.

Extra tip: Look out for signs explaining the folklore stories at various rocks and paths throughout town.

Hveravellir – Bandit Hideout and Geothermal Wonder

Nestled in the highlands between glaciers, Hveravellir is both geothermal marvel and outlaw legend. Icelandic folk hero Fjalla-Eyvindur lived here in the 18th century, surviving off the land after being declared an outlaw.

What to do: Bathe in a natural hot pool, listen to bubbling vents, and imagine life on the run in a land of fire and ice.

4x4 required: Only accessible via F-roads — perfect if you're planning a true Highland adventure.
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Drangey Island – Saga of Grettir the Strong

Off the north coast, this steep-sided island was the final refuge of Grettir Ásmundarson, the outlawed hero of Grettis Saga. It's said that his spirit lingers, watching over the sea cliffs and nesting birds.

Adventure idea: Book a boat trip from Sauðárkrókur and climb the cliff trail for breathtaking views — and perhaps a brush with legend.

Planning Your Folklore-Focused Road Trip

Here’s how to make your myth-chasing journey unforgettable:

• Book your vehicle early, especially in summer

• Use a GPS or Höldur’s route suggestions for folklore routes

• Respect natural sites (don’t stack stones or disturb known elf dwellings)

• Pack snacks, layers, and your sense of wonder!

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Frequently Asked Questions

Can I visit these sites year-round?

Many folklore locations are accessible year-round, but Highland areas like Hveravellir require 4x4 vehicles. Highland routes are only open in summer.

What type of vehicle should I rent?

For most folklore stops, a standard car is fine in summer. For Highland or winter travel, choose a 4x4.

Are there guided folklore tours?

Yes, towns like Hafnarfjörður offer local elf tours, and some regions offer storytelling hikes.

Do Icelanders really believe in elves?

Surveys show that many Icelanders won’t rule out the existence of the huldufólk. It’s part of the cultural fabric.

How can I stay safe when exploring?

Always check the weather (vedur.is), road conditions (road.is), and follow local signage. Download our app and get real-time weather alerts, a detailed driving guide, and safety tips.

What’s the best time for this trip?

Summer (June–August) offers the best road conditions and long daylight hours.

Are these sites crowded?

Many are off the beaten path, especially East Iceland and the Highlands, making them peaceful and uncrowded.

Can I combine this route with other famous attractions?

Absolutely! These sites integrate beautifully with Golden Circle, Ring Road, and Westfjords itineraries.

Is wild camping allowed?

Not in most folklore-sensitive areas. Use designated campsites and always follow Leave No Trace principles. You might want to take a look at our selection of camping cars and motorhomes.

Is this trip family-friendly?

Yes! Icelandic legends are full of colour and wonder — perfect for inspiring imaginations young and old.

Final Thought

In Iceland, stories aren’t just told—they’re alive, etched into every stone, waterfall, and hillside. Each landscape holds a tale, waiting for you to uncover it. With Höldur as your guide, you can follow these hidden legends wherever they lead—from the vibrant charm of Reykjavík to the untouched wonders of the Highlands.

As Iceland’s largest car rental operator, we offer over 8,000 vehicles and a network of locations across the country. Partnered with Europcar, we bring together global reliability and local expertise to ensure your Icelandic adventure is seamless, unforgettable, and full of magic.

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