Laugarás Lagoon Launches Along the Golden Circle

Iceland has no shortage of geothermal lagoons, and yet each new one still manages to feel like a discovery. The latest is Laugarás Lagoon, tucked beside the Hvítá River in Laugarás — an area with serious geothermal credentials and a long history, sitting close to the legendary Skálholt. It’s less than an hour and a half from Reykjavík, right on the Golden Circle route, which makes it an easy addition to a day out or a reason to slow down and stay longer.

All You Need, Plus a Little Extra

There’s something genuinely exciting about being among the first through the doors of a new lagoon. The towels are still pillowy soft, the changing rooms smell clean rather than damp, and the ticket price won’t have you wincing.

I arrived around 11:00 AM, just ahead of the morning’s first wave of visitors. Near the reception, a warmly lit corner displayed elegant ceramics alongside the lagoon’s signature shower products — it had the feel of a small art installation rather than a shop shelf.

but the real highlight of Laugarás Lagoon lies further on: this is merely the upper level.

The changing rooms are bright and airy — light wood, soft textures — “a bit unusual for a wet area,” as Managing Director Bryndís Björnsdóttir put it when we spoke later. The layout is clever about privacy too; even with a crowd, it doesn’t feel cramped. One thing I didn’t expect to notice was the music: a playlist curated by designer Anthony Bacigalupo that set exactly the right tone for a calm Friday morning. I did wonder how it would hold up in high season, but that morning it made getting changed feel genuinely unhurried.

The shower facilities are spotless — an open communal area plus private pods with rain showers and locally sourced hygiene products. “We wanted to bring you to nature,” Bryndís said, pointing to scents designed to echo the earthy, faintly floral smell of Icelandic summer grass.

Stepping out of the changing room into the warmth of the lagoon, any remaining tension from the drive simply left. A very good way to start a Friday.

The first pool is an infinity pool with a long view down the Hvítá River valley and a suspension bridge in the distance. I was told that after dark the bridge lights up spectacularly — and that the northern lights have already made an appearance several times since Laugarás opened. Yes, there’s a swim-up bar. But the more interesting detail is what’s below: there’s a second level, making this a two-storey lagoon. You can reach it via stairs, or you can push through a cascading waterfall. “It’s a bit like a river path,” Bryndís said, “where you come out at the top and work your way down.”

I’ll admit I paused at the waterfall the first time. Would it be cold? Would it be unpleasant? It was neither. Cover your drink, close your eyes, and you’re through.

The lower deck is generous. There’s another bar, a secluded grotto for quieter moments set behind what look like real basalt rocks, a 40°C forest tub, a plunge pool (which I politely declined), a dry sauna with a panoramic outlook, and a steam room. The steam room was probably my favourite spot — slightly separate from the main flow of people, with an industrial-yet-refined design that reminded me of the interior of a ship.

I drifted between levels, sipping a non-alcoholic cocktail made from local rhubarb and mint. But there was still a meal to get to.

Hyper-Seasonal, Hyper-Local

My curiosity about the lagoon had been running neck-and-neck with my curiosity about the restaurant, Ylja.

When Gísli Matthías Auðunsson — better known as Gísli Matt — announced that his acclaimed fine-dining restaurant, Slippurinn, in Vestmannaeyjar was closing, plenty of people in Iceland’s food world held their breath. The follow-up news landed quickly: he would be taking the helm at Laugarás Lagoon’s restaurant, bringing his way of cooking to this stretch of the Golden Circle.

Months before Ylja opened, I’d already been won over by the five-course menu called “Around Laugarás,” which puts the region’s farmers and local produce at the centre. There are other menus featuring meat and fish, but this one is entirely vegetarian and easy to adapt for vegans. In a country where plant-based eating has become far more accessible, this five-course menu still manages to stand apart — not because it skips meat, but because of the care and craft in each course. As a vegetarian, I took it as a quiet victory.

“Our goal is to let the flavours reflect the locale,” Gísli said. “It’s not too far removed from what we did on the island — it’s just a new set of ingredients, the same philosophy: focus on what’s around you.”

We started with salted cucumber dressed with fennel, rye crumble, herb vinaigrette, and whey — a by-product of skyr that takes on a lemon-like acidity when reduced. “So much of it goes down the drain and contributes to ocean acidification, so putting it back into the food cycle is actively good,” Gísli explained. At the same time, a “humble tomato carpaccio” arrived on top of fresh cheese — and quietly became my favourite dish of the day. The simplicity was deceptive; the tomatoes had been lightly fermented and the flavour hit hard.

Earlier this year I’d seen on Instagram that chef Lucas Keller, formerly of The Coocoo’s Nest, had joined Gísli in Vestmannaeyjar. When Gísli set down a plate of sourdough, it clicked: “He helped me with the bread. This is his acclaimed sourdough, served with caramelized butter and grilled peppers from a nearby farm,” Gísli said.

Three words: To die for. I’ll be returning to Laugarás solely for this bread.

My dining companion, Art Bicnick, was on the omnivore menu — Arctic char, slow-cooked cod, lamb sirloin — and his repeated declarations of “This is the best meal of my life!” could have easily turned into a drinking game.

I should confess: I have spent most of my life avoiding beets. The texture has never appealed to me. But Gísli’s arrangement of several varieties — yellow among them — over smoked skyr with pickled bilberries, spiced nuts, and tarragon made me reconsider entirely. Every bite tasted like something different.

The main course brought a medley of cauliflowers over barley porridge with mushroom and seaweed broth, finished with grilled oyster mushrooms. Unconventional, yes — but it worked. Fresh and deeply savoury at once.

Dessert was a chocolate mousse made from 70 percent cocoa and olive oil — vegan, Gísli reminded me — topped with cacao nibs and blackcurrants to cut the richness, with one unexpected touch: arctic thyme granita, a bit of Sicilian thinking applied to Icelandic ingredients.

When Gísli mentioned the menu would be seasonal, I assumed he meant the usual summer-to-winter shift. Ylja’s approach is considerably more restless than that. “We want to keep the menu small but change it often,” he said. “The cauliflowers you had tonight — they won’t be on next week.” He’s already thinking about Lion’s Mane mushrooms grown locally, and rutabaga, an Icelandic staple. “We want to grill it and give it some character,” he said.

Ylja also wants to be practical, not just ambitious. The daytime menu offers soup, a main course, and grab-and-go snacks — something for families and anyone who isn’t in the mood for a five-course event.

“The local produce is remarkable,” Gísli said. “When you build relationships with farmers, you find out what’s at its best right now — and that’s what ends up on the plate.”

Ylja means “warmth” in Icelandic, and the name fits — both the restaurant and the whole Laugarás Lagoon experience. From the steam room to the fermented tomato carpaccio, it all added up to something I didn’t want to leave. I’ll be back.

Experience provided by Laugarás Lagoon. To book your lagoon tickets or reserve a table at the restaurant, visit: laugaraslagoon.is