Compare best hostels in Iceland from 100+ providers!

The Fox Hostel - Private 8-bed Dormitory Room is located in Hrifunes Nature Park on Iceland's South Coast, situated between Vík í Mýrdal and Kirkjubæjarklaustur, a historically significant stopping point for travelers. This newly furnished 2025 hostel offers a modern experience within a landscape of glaciers, volcanoes, and black sand beaches, providing direct access to dramatic natural scenery.
This private dormitory accommodates up to 16 guests and features 8 double beds, with access to a shared kitchen equipped with a fridge and microwave, and 9 bathrooms, all within a garden setting. The hostel's location promotes tranquility and offers a quiet escape surrounded by vast scenery, making it an ideal base for exploring the South Coast.

Askja Hostel, located in Mōðrudalur, offers a remote Icelandic adventure and serves as an excellent base for exploring the highlands toward the Askja caldera.
This guesthouse provides internet and a kitchen, with no curfew, and welcomes children aged 1 to 18, making it suitable for families seeking access to Mývatn's hiking trails and natural attractions.

The Volcano Huts ÞóRsmörk is a remote wilderness lodge located within Thorsmork Nature Reserve, 20 miles from Seljalandsfoss waterfall and 81 miles from Reykjavik, offering a secluded experience accessible only by hiking or specialized transport.
This mountain hut accommodation provides a base for trekkers near the Laugavegur and Fimmvörðuháls hiking trails, featuring an on-site sauna, Lava Grill Restaurant & Bar, private terraces with nature views, and concierge services for arranging jeep safaris and local activities.

ÓSar Hostel offers beachfront lodging in Vatnsnes, Iceland, approximately 80 miles from Akureyri Airport, providing easy access to the peninsula's wildlife viewing areas.
This family-friendly guesthouse features a shared lounge, bar, free Wi-Fi, free parking, and a terrace, along with a kitchen equipped with a refrigerator and microwave.

The Freezer Hostel & Culture Centre is located in Snaefellsbaer, just a short walk from the town center and close to the Snaefellsjokull glacier. It has received rave reviews for its unique concept and friendly atmosphere.
The hostel has a large lounge/tiki bar, a fully equipped kitchen, and free parking. Guests can enjoy nightly entertainment, including live music, karaoke, and film screenings, as well as happy hour specials and a social atmosphere that encourages interaction with fellow travelers.

Bus Hostel Reykjavik - Reykjavik Terminal is a budget-friendly lodging option located in Reykjavik, a 5-minute drive from Perlan and Reykjavik University, and approximately 1.1 miles from Hallgrimskirkja and 1.1 miles from Laugavegur.
This guesthouse offers complimentary Wi-Fi, a communal kitchen, a bar, a snack bar, and free on-site parking, with a terrace providing scenic views.

B14 Hostel is located in Reykjavik's Laugardalur district, a 5-minute drive from Laugavegur and Laugardalslaug geothermal pool, and approximately 2.5 miles from Perlan and Hallgrimskirkja.
This budget-friendly lodging offers free Wi-Fi, a shared kitchen, express check-in/check-out, and rooms with air conditioning and a microwave, plus a terrace with a view.

Dalvík Hostel Gimli offers budget-friendly lodging in Dalvík, Iceland, conveniently located 27 miles from the Hof Cultural Center and Conference Hall and 28 miles from Akureyri Airport.
This family-friendly guesthouse features a shared kitchen with a fridge and microwave, a garden, parking, and offers ski equipment rental, making it ideal for exploring the area's hiking and skiing trails.

Space Capsule Hostel Arblik by Welcome Hotels offers unique, private space capsule accommodations in Búðardalur, serving as a strategic point for exploring Western Iceland's fjords and coastlines.
This budget-friendly lodging provides internet and a kitchen, with no curfew and check-in available from 4:00 PM to 9:00 PM, ideal for travelers seeking a modern experience and convenient access to the region's natural attractions.

Korpudalur Hi Hostel is a renovated farmhouse located a short drive from Flateyri, offering stunning views of the Westfjords' mountains and rivers, and close to the Dynjandi Waterfall and Ísafjördur village. The hostel has received very good user ratings for its cleanliness, location, and overall experience.
The hostel features a shared kitchen and laundry facilities, a relaxing TV lounge, a terrace, and a garden. Guests can enjoy breakfast, free Wi-Fi, and parking, and explore the surrounding area with hiking, cycling, and birdwatching opportunities.

Hlíðarból Guesthouse is situated in Rangárþing eystra, Iceland, offering convenient access to attractions such as the Saga Centre, located 6 miles away, and within 12 miles of the Lava Centre and Hella Golf Course.
This guesthouse provides complimentary WiFi in public areas and free self-parking, with shared bathroom facilities and a kitchen equipped with a fridge and microwave oven for guest use.

Askja Hostel in Modrudalur offers convenient lodging approximately 80 kilometers from Vopnafjörður Airport, providing easy access to local attractions.
This one-bedroom, one-bathroom guesthouse features a garden, bar, parking, and free Wi-Fi, plus a shared lounge and daily breakfast options including vegetarian and gluten-free choices.