What is the capital city of Iceland?

The capital city of Iceland is Reykjavík.

Reykjavík is Iceland’s largest city and the country’s political, economic and cultural centre. It lies in southwestern Iceland on the southern shore of Faxaflói Bay. The city’s name means “Smoky Bay,” a reference to steam rising from nearby geothermal areas, according to the traditional settlement story.

Iceland’s first permanent Norse settler, Ingólfur Arnarson, is traditionally said to have established his farm at Reykjavík around 874. The settlement remained small for centuries. In the eighteenth century, Danish authorities supported industrial development there, helping it grow into an important town.

Reykjavík became Iceland’s capital when Iceland gained home rule in 1904 and remained the capital when the country became a republic in 1944. A frequent mistake is choosing Oslo, the capital of Norway, or Helsinki, the capital of Finland; Reykjavík is the northernmost national capital of a sovereign state.