Iceland contains the world's northernmost national capital, Reykjavík.
Reykjavík lies on Iceland's southwest coast at about 64° north latitude. Although several settlements and regional capitals lie farther north, Reykjavík is generally identified as the northernmost capital of a sovereign state. Its name is commonly translated as “Smoky Bay,” referring to steam rising from nearby geothermal areas.
The city became an official town in 1786 and grew into Iceland's political, cultural, and economic center. Iceland's parliament, the Alþingi, meets there, and most of the country's population lives in the surrounding capital region.
A common mix-up is confusing Reykjavík with the northernmost capital by longitude or with the northernmost large city. Those categories can produce different answers; the standard trivia distinction is the world's northernmost national capital.