This quiet little town in the area of Hérað is the capital of the east and sits on the banks of the Lagarfljót river with a population of 2300 inhabitants. This is one of the youngest towns in Iceland as urbanization began in the 1940s. Renowned for its warm weather in the summer and gorgeous northern lights in the winter.

Egilsstaðir has grown to become the largest town of East Iceland and its main service, transportation, and administration centre. It has an airport, college, and a hospital.

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