Housed in an imaginatively restored warehouse by the harbour, the must-see Settlement Centre offers fascinating insights into the history of Icelandic settlement and the Saga era. The museum is divided into two exhibitions; each takes about 30 minutes to visit. The Settlement Exhibition covers the discovery and settlement of Iceland. Egil's Saga Exhibition recounts the amazing adventures of Egil Skallagrímsson (the man behind Egil’s Saga) and his family. A detailed multilingual audio guide is included.
This is not your run-of-the-mill Icelandic folk museum: the Settlement Centre offers deep background into Iceland’s history and flora and fauna, and a firm context in which to place your Icelandic visit; and Egil's Saga is one of the most nuanced and action-packed of the sagas. The centre has placed cairns throughout town marking key sites from Egil's Saga. It also has a top-notch restaurant.