Iceland Christmas Markets: Magic of the Holiday Season

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Iceland Christmas Markets

The Christmas markets in Iceland offer a warm and captivating holiday experience in the island’s winter landscape. Illuminated by dazzling lights, adorned with local goods, delectable sweets, and traditional Icelandic decor, these markets foster a celebratory ambiance ideal for seasonal festivities. Iceland’s Christmas markets provide distinctive items and delightful winter experiences, ranging from Reykjavík’s vibrant downtown to the picturesque countryside. Each market captures the spirit of Icelandic Christmas traditions, allowing visitors to explore local craftsmanship and sample festive foods. Here, we’ve highlighted the five best Christmas markets in Iceland, where you can embrace the holiday spirit in a truly magical setting. For more European charm, explore the festive Zurich’s Christmas Markets.

1. Reykjavik Yule Town Christmas Market

Brixham Christmas Market

The Reykjavik Yule Town Christmas Market, situated at the vibrant Ingólfstorg Square, is among Iceland’s most cherished festive attractions. Annually, this market converts downtown Reykjavik into a joyous spectacle, attracting both locals and tourists with its inviting Nordic atmosphere. Glistening lights, an elaborately adorned Christmas tree, and the aroma of mulled wine establish an enchanting ambiance that embodies the essence of Icelandic Christmas customs. The Yule Town Christmas Market features more than twelve stalls presenting distinctive handmade goods, Icelandic wool jumpers, and seasonal delicacies, making it an ideal location for holiday shopping. Icelandic Yule Lads, Iceland’s mischievous Santa-like characters, make regular appearances, adding a unique Icelandic twist to the market. The market’s outdoor ice skating rink offers visitors a fun winter activity, while the daily performances by local choirs fill the air with holiday music. This charming Christmas market provides an authentic Icelandic holiday experience, blending tradition, warmth, and festive spirit in the heart of Reykjavik.

Address: Ingólfstorg Square, 101 Reykjavík, Iceland

Dates: December 1 – December 23, 2025

Weekly Opening and Closing Times: Monday-Sunday 12 PM – 8 PM

Entrance Fee: Free entry and for more guiding details: click here

Nearest T Stations

  1. Hlemmur Bus Terminal – A 10-minute walk to Ingólfstorg Square.
  2. BSÍ Bus Terminal – Short bus ride or 20-minute walk to the market.

Events

  1. Yule Lad Appearances – Icelandic Santa Clauses visit the market every weekend.
  2. Christmas Choir Performances – Local choirs sing carols each evening.
  3. Ice Skating Rink – Open daily for all ages to enjoy winter skating.

Famous Shops or Stalls

  1. Icelandic Wool Sweaters – Handcrafted, warm sweaters from local artisans.
  2. Holiday Candles – Beautiful candles in festive designs.
  3. Mulled Wine Stand – Traditional spiced wine to keep visitors warm.

Special Spots You Should Not Miss

  1. Yule Tree – A large, decorated Christmas tree in the center of the market.
  2. Holiday Photo Booth – Capture memories with Icelandic winter backdrops.
  3. Cozy Fireplace Corner – Warm up by a traditional fireplace.
  4. Ice Sculpture Garden – Unique sculptures showcasing Icelandic themes.
  5. Downtown Reykjavík Lights – Explore the city’s beautifully decorated streets.

Parking and Parking Fee

Available at Kolaportið Parking Lot for approximately 150 ISK per hour.

Nearby Hotels

  1. CenterHotel Plaza – Stylish hotel located just steps from the market.
  2. Reykjavík Konsúlat Hotel – Luxurious hotel with a cozy ambiance.
  3. Hotel Borg – Elegant hotel in the heart of downtown Reykjavík.

Nearby Restaurants

  1. The Laundromat Café – Known for its festive decor and great food.
  2. Sjávargrillið – Icelandic seafood dishes with holiday specials.
  3. Bæjarins Beztu Pylsur – Famous hot dog stand, a must-try in Reykjavík.

2. Hafnarfjörður Christmas Village

The Hafnarfjörður Christmas Village is a charming holiday market situated in the picturesque seaside town of Hafnarfjörður, a brief drive from Reykjavik. Renowned for its fabled associations with elves and secret beings, Hafnarfjörður infuses the Christmas season with enchantment through its inviting, family-oriented market. The Christmas Village, situated in the Old Square of the town, is a must-visit destination for holiday shopping. It offers a wide variety of seasonal delicacies, Icelandic wool items, and local artisan products. Traditional Icelandic folk music performances, Elf Walks conducted by locals dressed as Icelandic elves, and Santa’s Workshop, where children can engage in seasonal crafts and activities, are all available to guests. The market’s decorated stalls and the Elf Garden, a special area dedicated to Iceland’s mythical inhabitants, add a whimsical element to the experience. With its community-focused atmosphere and unique Icelandic charm, the Hafnarfjörður Christmas Village is a delightful spot to experience Icelandic holiday traditions and create magical holiday memories.

  • Address: Fjarðargata 19, 220 Hafnarfjörður, Iceland
  • Dates: December 2 – December 23, 2025 (Weekends only)
  • Weekly Opening and Closing Times: Saturday-Sunday 1 PM – 6 PM
  • Entrance Fee: Free entry

Nearest T Stations

  1. Hafnarfjörður Bus Station – Short walk to Fjarðargata 19.
  2. Hlemmur Bus Terminal – A 15-minute bus ride from Reykjavík.

Events

  1. Elf Walks – Guided tours with local elves sharing Icelandic folklore.
  2. Live Folk Music – Traditional Icelandic folk performances every weekend.
  3. Santa’s Workshop – Crafts and activities for children with Santa Claus.

Famous Shops or Stalls

  1. Icelandic Handicrafts – Locally made holiday decorations and gifts.
  2. Woolen Goods Stand – Warm scarves, hats, and mittens.
  3. Gingerbread Bakery – Freshly baked holiday cookies and treats.

Special Spots You Should Not Miss

  1. Elf Garden – Decorated area dedicated to Iceland’s mythical elves.
  2. Christmas Light Walk – Pathway lit with sparkling holiday lights.
  3. Hafnarfjörður Harbour – Scenic view decorated with festive lights.
  4. Old Town Square – Historic area transformed for the holidays.
  5. Christmas Cabin – Cozy space with hot cocoa and seasonal treats.

Parking and Parking Fee

Free parking available at Hafnarfjörður Town Center Parking Lot.

Nearby Hotels

  1. Hotel Viking – Unique themed hotel close to the Christmas Village.
  2. Icelandair Hotel Reykjavik Natura – Comfortable option near Reykjavík.
  3. Hotel Hafnafjörður – Conveniently located with cozy rooms.

Nearby Restaurants

  1. Von Mathús – Family-friendly spot with holiday specials.
  2. Kaffihús Vesturbæjar – Cozy café with delicious pastries.
  3. Pallett – Great coffee and casual food options nearby.

3. Akureyri Christmas Market

Akureyri Christmas Market

The Akureyri Christmas Market, situated in the scenic village of Akureyri, the northern capital of Iceland, offers festive enjoyment. The market in Ráðhústorg offers visitors an authentic Christmas experience, showcasing traditional Icelandic decorations, warm seasonal beverages, and premium handcrafted goods. The tree-lighting ritual is a significant aspect of the market, signifying the onset of the holiday season and dazzling the plaza with radiant lights. Visitors to Akureyri can witness the Northern Lights while exploring the market, enriching the captivating experience. This location is ideal for discovering unique holiday gifts, featuring kiosks stocked with local products such as Icelandic ceramics, woolen garments, and handcrafted chocolates. Icelandic mythology is vividly showcased in comfortable tents during storytelling sessions at the market, captivating both children and adults. The Akureyri Christmas Market, located in the center of the Icelandic countryside, offers a distinctive holiday experience marked by its scenic surroundings and traditional Icelandic festive elements.

  • Address: Ráðhústorg, 600 Akureyri, Iceland
  • Dates: December 8 – December 23, 2025
  • Weekly Opening and Closing Times: Monday-Sunday 12 PM – 7 PM
  • Entrance Fee: Free entry

Nearest T Stations

  1. Akureyri Bus Terminal – Located close to Ráðhústorg.
  2. Akureyri Airport – Short taxi or bus ride to the market.

Events

  1. Tree Lighting Ceremony – Celebratory lighting to start the market.
  2. Northern Lights Sightings – Market offers a great view of potential auroras.
  3. Storytelling Sessions – Icelandic folklore shared in cozy tents.

Famous Shops or Stalls

  1. Icelandic Artisans – Unique pottery and crafts made by locals.
  2. Akureyri Chocolates – Handmade chocolates and sweets.
  3. Winter Wool Stall – Cozy wool products crafted in Iceland.

Special Spots You Should Not Miss

  1. Akureyri Church – Beautifully lit landmark overlooking the market.
  2. Northern Lights Lookout – Prime spot for aurora viewing.
  3. Arctic Botanical Garden – Transformed into a winter wonderland.
  4. Snowy Mount Hlíðarfjall – Scenic mountain backdrop for the market.
  5. Ice Sculpture Exhibit – Local artists display stunning ice creations.

Parking and Parking Fee

Available at Akureyri Town Center Parking for free.

Nearby Hotels

  1. Hotel Kea by Keahotels – Centrally located with a cozy atmosphere.
  2. Icelandair Hotel Akureyri – Comfortable stay with beautiful views.
  3. Hotel Akureyri – Modern hotel close to the market.

Nearby Restaurants

  1. Strikið – Popular for Icelandic seafood dishes.
  2. Greifinn – Casual dining with seasonal specialties.
  3. Akureyri Backpackers Café – Great food in a relaxed environment.

4. Egilsstaðir Christmas Market

Located in the center of East Iceland, the Egilsstaðir Christmas Market provides a delightful holiday experience. In December, Egilsstaðir transforms into a celebratory locale featuring a market that pays tribute to Icelandic heritage and traditions. The town’s picturesque environment and overall ambiance are highly esteemed. Located in the town center, the market has hand-knitted clothing, locally grown honey, and handcrafted soaps among other locally made products. Weekend programs allow guests to learn Icelandic handicaps and design their own seasonal decorations, therefore fostering understanding of Icelandic craftsmanship. Local musicians perform holiday songs, creating a warm, inviting atmosphere that brings the community together. Families will enjoy the children’s storytelling hour, where classic Icelandic holiday tales are shared. With its welcoming ambiance and focus on traditional Icelandic culture, the Egilsstaðir Christmas Market is a delightful holiday destination that provides visitors with an authentic and intimate Icelandic Christmas experience in a breathtaking rural setting.

  • Address: 700 Egilsstaðir, Iceland
  • Dates: December 1 – December 24, 2025 (Weekends only)
  • Weekly Opening and Closing Times: Saturday-Sunday 11 AM – 5 PM
  • Entrance Fee: Free entry

Nearest T Stations

  1. Egilsstaðir Bus Terminal – Short walk to the town center.
  2. Egilsstaðir Airport – Quick taxi ride to the market.

Events

  1. Crafting Workshops – Visitors can make their own holiday decorations.
  2. Live Music Performances – Local musicians play holiday songs.
  3. Children’s Story Hour – Icelandic holiday tales for kids.

Famous Shops or Stalls

  1. Eastern Iceland Crafts – Beautiful handmade items from local artisans.
  2. Local Honey Stand – Raw honey and beeswax candles.
  3. Traditional Icelandic Knitwear – Warm sweaters, gloves, and more.

Special Spots You Should Not Miss

  1. Lagarfljót River – Scenic river view with holiday decor.
  2. Hallormsstaður Forest – Iceland’s largest forest, nearby for a winter walk.
  3. East Iceland Heritage Museum – Explore Icelandic history.
  4. Fossardalur Waterfall – Short drive for a scenic holiday outing.
  5. Holiday Lights Path – Illuminated trail through town.

Parking and Parking Fee

Available at Egilsstaðir Town Center for free.

Nearby Hotels

  1. Lake Hotel Egilsstaðir – Traditional hotel with lake views.
  2. Gistihúsið Egilsstöðum – Cozy and close to the market.
  3. Guesthouse Lyngás – Budget-friendly option in town.

Nearby Restaurants

  1. Salt Café & Bistro – Known for local dishes with a holiday twist.
  2. Askur Pizzeria – Great for casual dining.
  3. Kaffi Egilsstaðir – Cozy café with holiday treats.

5. Christmas Village in Selfoss

Christmas Village in Selfoss

Selfoss’s Christmas Village infuses winter allure into the picturesque town in southern Iceland, attracting both residents and visitors with its festive ambiance. The market, situated in Selfoss Town Square, operates on weekends and has many seasonal attractions, such as horse-drawn sleigh rides, live nativity scenes, and Christmas carolers who enhance the festive atmosphere with music. Handcrafted toys, woolen products, and homemade fudge constitute the distinctive Icelandic treasures offered at the market’s elegantly adorned wooden booths. The Icelandic Pony Stable at the Selfoss Christmas Village offers children the opportunity to interact closely with amiable ponies and experience aspects of Icelandic agricultural life. With the Ölfusá River and Ingolfsfjall Mountain providing a picturesque backdrop, the market is a charming place to experience Iceland’s natural beauty during the holiday season. Visitors can warm up with hot cocoa from nearby stalls and enjoy the cozy ambiance created by holiday lights and traditional decorations. The Christmas Village in Selfoss captures the warmth of an Icelandic Christmas with a rustic, community-oriented atmosphere that is perfect for families and holiday enthusiasts.

  • Address: Selfoss Town Square, 800 Selfoss, Iceland
  • Dates: December 9 – December 23, 2025 (Weekends only)
  • Weekly Opening and Closing Times: Saturday-Sunday 1 PM – 6 PM
  • Entrance Fee: Free entry

Nearest T Stations

  1. Selfoss Bus Station – A short walk to the town square.
  2. Hveragerði Bus Stop – A 15-minute bus ride.

Events

  1. Live Nativity Scene – A reenactment of the nativity story.
  2. Christmas Carolers – Singers perform traditional carols.
  3. Santa’s Sleigh Rides – Horse-drawn rides around the town.

Famous Shops or Stalls

  1. Handmade Icelandic Toys – Traditional, locally made toys.
  2. Wool and Knitwear – Cozy wool products from Iceland.
  3. Icelandic Fudge Stand – Delicious handmade fudge.

Special Spots You Should Not Miss

  1. Ölfusá River – Beautiful view with holiday lights.
  2. Selfoss Water Tower – Lit up for the season.
  3. Icelandic Pony Stable – Friendly ponies for kids to meet.
  4. Ingolfsfjall Mountain – Scenic mountain view nearby.
  5. Hot Springs Trail – A nearby path for winter walks.

Parking and Parking Fee

Free parking at Selfoss Town Center.

Nearby Hotels

  1. Hotel Selfoss – Overlooks the river with a festive ambiance.
  2. Guesthouse Garun Selfoss – Cozy and central.
  3. Country Dream Guesthouse – Rustic stay close to the market.

Nearby Restaurants

  1. Kaffi Krús – Known for holiday cakes and pastries.
  2. Riverside Restaurant – Seasonal Icelandic cuisine.
  3. KFC Selfoss – Quick bites with holiday treats.

Conclusion

Iceland’s Christmas markets offer a festive celebration of local culture, traditions, and craftsmanship. From Reykjavík’s bustling Yule Town Market to the charming village of Selfoss, each market provides unique holiday experiences, enchanting decorations, and memorable events. Visitors can enjoy Icelandic delicacies, shop for handcrafted gifts, and participate in traditional holiday activities. Embrace the magic of Iceland’s holiday season by visiting these markets and soaking in the warmth and charm of a Nordic Christmas.

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