A village in Borgarfjörður Eystri, and a trading post since 1894. Now fishing, fish processing, trade and farming.
A church with a fine altar piece painted by Jóhannes S. Kjarval (1885-1972), who grew up in Borgarfjörður.
It shows Christ giving the Sermon on the Mount, standing on Álfaborg with the Dyrfjöll mountains behind him.
In this willage you find the company Álfasteinn where all sorts of artefacts are made of stone, and there is a good local mineral collection. An information centre, located in Álfasteinn, provides all general service to tourists with a special emphasis on hikers.