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As far as little towns go, Höfn is a masterpiece. Sitting at the base of the Vatnajökull Glacier, this town is an incredible jumping off point for glacial exploring and hiking. The gateway to eastern Iceland, I can't recommend staying in Höfn enough.
Höfn is a quaint town with incredible food and a homey feel. Don't miss sunset at the waterfront walk - as this will give you a magical view of the water and the glacier. Just sitting and watching the sunset here may have been one of our favorite parts of the trip.
When it comes to food. The langoustine is a must try. We had an incredible meal at the Pakkhus Restaurant. While a bit pricey, it was worth every penny to get an authentic Scandinavian treat.
Even better was Hafnarbudin a small diner that served out of this world langoustine sandwiches, fish n chips, and ice cream.
Take a drive 10 minutes out of town to see the Hofell baths. The perfect place to relax after a long day of hiking or exploring the glacier.