1. Traditional Lopapeysa Sweaters and Wool Accessories
The lopapeysa is one of the top souvenirs from Iceland, loved for its warmth, unique patterns, and cultural significance. These hand-knit sweaters are made from Icelandic sheep’s wool, which is naturally water-resistant and ideal for cold climates. Their distinct circular yoke patterns are inspired by Iceland’s landscapes and history, giving each piece a traditional yet timeless look.
Lopapeysur holds a Protected Designation of Origin (PDO) and must meet specific criteria to be considered authentic. They’re a staple in Icelandic wardrobes, often worn at cultural events like outdoor festivals and the autumn rettir sheep gathering. They’ve even been given as symbolic gifts of friendship to world leaders!
If a whole sweater feels like too much, you’ll also find wool scarves, hats, gloves, socks, and even wall art made from the same locally sourced material. These accessories are just as practical and easier to pack. Travelers from warm climates who may not need cold-weather gear can still pick up unique wool art as a meaningful souvenir.
You can find authentic lopapeysa and other wool accessories in stores like the Handknitting Association of Iceland in downtown Reykjavik, where each piece is handmade with care. They’re a wonderful way to stay warm while remembering your Icelandic adventure!
Notable Mentions: More Icelandic Souvenirs Travelers Love
Some souvenirs are all about the charm and joy they spark the moment you see them. Across Iceland, you’ll find fun, creative, and sometimes quirky items that travelers can’t resist picking up. These lighthearted favorites may not be historic, but they’re full of personality and make for great gifts or playful reminders of your Icelandic trip.
Puffin Plushies and Figurines
It’s hard not to smile when you spot a puffin. Their wide eyes, bright beaks, and cute walk make them one of Iceland’s most charming creatures. With millions nesting here each summer, puffins have become a true symbol of Icelandic wildlife. A plush toy or figurine lets you carry a bit of that joy home with no birdwatching gear required!
Soft puffin plushies are perfect for kids or anyone who loves a cuddle-worthy souvenir. For something a little more refined, you’ll find puffin figurines crafted by local artists, often featuring a modern and distinctly Icelandic design style. These souvenirs pop up everywhere, from Reykjavik’s main shopping streets to cozy coastal shops. So, you’re sure to find one that suits your style.
Puffin-themed gifts are more than just fun toys. They bring back the moment of watching these little birds by the windy cliffs. Placed on a shelf or tucked into your suitcase, they offer a playful and personal reminder of Iceland’s wildlife and coastal charm.
Lava Jewelry
Wearing a piece of lava jewelry feels like keeping a bit of Iceland’s heart close to yours. Formed by molten rock that once flowed across black sand plains and cooled beneath northern skies, each bead carries the memory of a land shaped by fire.
These pieces are striking to look at and tell a story of strength, transformation, and deep connection to nature. Many travelers say that lava stone makes them feel steady and centered. Necklaces, bracelets, and earrings crafted from lava rock are lightweight, timeless, and effortless to wear, pairing well with nearly anything.
You’ll find lava jewelry throughout Reykjavik’s shops and craft markets, often paired with silver or local stones. It’s a subtle souvenir, but a powerful one. These pieces are something you can wear long after your trip, with a quiet reminder of Iceland’s powerful beauty.
Handcrafted Trolls and Elves
In many Icelandic souvenir shops, you’ll find rows of carved wooden trolls and elves. These are small, expressive figures that nod to the country’s folklore. Inspired by Icelandic myths, these handcrafted pieces often represent the magic and mystery of the nation’s storytelling traditions.
Trolls are linked to Iceland’s dramatic landscape, with rock formations across the countryside said to be trolls turned to stone by the sun. Elves, or “huldufolk” (hidden people), are believed to dwell in lava fields and grassy hills, quietly watching over the land. Choosing one of these figures as a souvenir adds a layer of meaning to your trip. It connects imagination, culture, and place in a simple but lasting way.
Crafted by local artisans, each carving has its own personality. Some are playful, others more rustic, but all carry a sense of Iceland’s creative spirit. They’re easy to pack, full of character, and a great way to bring a piece of Iceland’s folklore into your home.
Nature Condoms and Other Funny Gifts
Not every souvenir has to be serious. Some are just meant to make you laugh!
Iceland’s Nature Condoms are a perfect example. Inspired by geysers, volcanoes, steam vents, and even the northern lights, each variety comes in cheeky packaging that turns Iceland’s wild landscape into playful design. They’re lighthearted, unexpected, and just the kind of thing that gets passed around at the next dinner party with a smile.
But the laughs don’t stop there. Shops across Reykjavik, especially along Laugavegur Street, are packed with quirky T-shirts, mugs, and socks featuring puffins, trolls, and Icelandic sayings with a twist. Some items draw on Icelandic folklore, such as the mischievous Yule Lads or the giant Yule Cat, while others play off the country’s famously unpredictable weather and dramatic landscapes.
These humorous gifts are easy to pack, affordable, and always memorable. Iceland’s unusual souvenirs deliver a little laughter with every glance, and they’re great for anyone who appreciates a good laugh.
The 6 Best Places for Souvenirs in Reykjavik
As you explore Reykjavik’s lively streets, you’ll find shops filled with items that reflect Iceland’s nature, culture, and charm. Here are the best places in Reykjavik to seek out Iceland’s top souvenirs that help you hold on to the feeling of your trip.
6. Hjarta Reykjavikur
Hjarta Reykjavikur, or “Heart of Reykjavik,” is a must-visit for anyone hunting for creative, locally made souvenirs. Located on Laugavegur Street, the city’s main shopping avenue, this charming shop is known for its playful take on everyday Icelandic life. Inside, you’ll find posters, puzzles, cups, and more. All of which feature bright designs of Reykjavik’s colorful houses and the city’s beloved cats.
Many of the items spotlight famous feline residents like Baktus, who’s gained a loyal following on social media. The shop’s fun and artistic style makes it stand out from more traditional souvenir spots. It’s the perfect place to pick up cheerful, design-focused gifts that reflect Reykjavik’s local charm and personality.
5. PolarBear Gift Store in Reykjavik
PolarBear Gift Store is located in central Reykjavik on Laugavegur 38. It’s a favorite among travelers seeking a diverse range of souvenirs with character. The shop has a playful atmosphere, with a giant polar bear display that’s perfect for photos.
Inside, you’ll find shelves stocked with Icelandic favorites. You’ll find plush toys, volcanic stone jewelry, wool accessories, local treats, and handcrafted souvenirs that reflect both the country’s nature and folklore. Each item is carefully selected to tell a part of Iceland’s story, and it’s easy to spot something personal, whether you’re picking up a small token or a standout gift.
What sets PolarBear Gift Store apart is its unique blend of charm and quality, complemented by a friendly staff that is happy to share the background of the products. It’s an ideal place to explore local artistry, discover something meaningful, and walk away with a souvenir that feels connected to the Icelandic experience.
4. Kolaportid Flea Market
Photo from Wikimedia, Creative Commons, by Karl Gunnarsson. No edits made.
Kolaportid is Iceland’s largest flea market, located right by Reykjavik’s Old Harbor. Open on weekends, it’s a fantastic spot for unique souvenirs with a local touch.
Inside this bustling indoor market, you’ll find everything from traditional foods like dried fish and licorice to vintage clothing, secondhand books, handmade jewelry, and playful Icelandic items. It’s a mix of old and new, with something interesting around every corner.
This is the go-to destination for souvenirs that reflect Icelandic culture, often at more reasonable prices than typical tourist shops. You’ll find wool accessories, locally made crafts, and even the occasional authentic lopapeysa sweater. Visiting Kolaportid gives you a real feel for local life and a chance to discover something truly different.
3. The Handknitting Association of Iceland
The Handknitting Association of Iceland is a well-loved shop in downtown Reykjavik and a top spot for finding authentic lopapeysa sweaters. Known for its strong focus on tradition and quality, the shop features a wide range of handmade wool products crafted by skilled Icelandic knitters.
Inside, you’ll find sweaters, scarves, hats, and mittens crafted from locally sourced wool, prized for its warmth and exceptional durability. Each item is unique, reflecting the care and craftsmanship that have kept Icelandic knitting traditions alive for generations.
The store also offers knitting kits and patterns, an excellent option for travelers who enjoy hands-on projects. Shopping here supports local artisans and gives you the chance to take home a piece of Iceland’s cultural heritage.
2. Nomad Gift Shop in Reykjavik
Tucked at the corner of Laugavegur and Frakkastigur in Reykjavik, Nomad feels more like exploring a cozy artist’s studio than shopping in a typical store. Here, you’ll find hand-carved bird figurines, fine art prints, and unusual games that stir up childhood memories. The store’s warm, curated feel makes it easy to lose track of time while browsing.
The store celebrates Iceland’s nature and creative spirit through locally designed products. Highlights include the handcrafted Islandsfuglar bird collection and the Tibra jewelry line, inspired by sea glass and Icelandic summers. You’ll also find items like volcanic stone pottery, nostalgic toys, Polaroid cameras, and a playful range of books and lifestyle items that reflect Icelandic humor and heart.
This is the place to go when you want a souvenir that’s anything but ordinary. Nomad offers a fresh take on Icelandic design, all wrapped in an imaginative atmosphere that reflects the soul of Reykjavik.
1. Rammagerdin
Rammagerdin has been part of Iceland’s design story since 1940, and today, it’s one of the most rewarding places to shop for souvenirs in Reykjavik. Located along the city’s bustling Laugavegur shopping street, this well-loved store brings together timeless tradition and fresh local design under one roof.
Inside, you’ll find shelves lined with hand-knitted wool sweaters, volcanic stone jewelry, minimalist ceramics, and Icelandic skincare. The selection is thoughtfully curated, offering an authentic taste of Iceland’s culture, materials, and everyday beauty without feeling commercial or mass-produced.
It’s also one of the few places where you can explore work by more than 400 local designers in a single stop. With branches near Hallgrimskirkja Church, inside Harpa Concert Hall, and at the Keflavik International Airport, it’s easy to visit no matter where you are in the city.
The 3 Best Places for Souvenirs Outside Reykjavik
The search for the best souvenirs in Iceland doesn’t stop in Reykjavik. In smaller towns and coastal shops, you’ll find handmade treasures and local treats with a story. Here are the top three places for souvenirs in Iceland.
3. The Christmas House (Akureyri)
▶” title=”The Top 10 Souvenirs from Iceland – video” style=”border: 0px; overflow: hidden;” class=”lazyload”>
If you’re planning to explore North Iceland, a visit to Akureyri is a must, and while you’re there, don’t miss the Christmas House. This cozy shop is a great spot to find Christmas decorations, Icelandic Yule Lad figurines, and other unique souvenirs inspired by Icelandic holiday traditions. Even if you’re visiting in the middle of summer, make sure to stop by for the festive atmosphere!
When traveling through North Iceland, a visit to Akureyri is a must. Just 15 minutes from the city center, The Christmas House adds a touch of holiday magic. Open year-round, this charming red cottage overflows with festive cheer, offering a cozy escape filled with twinkling lights, music, and the scent of cinnamon.
Inside, you’ll find Icelandic Yule Lad figurines, handcrafted ornaments, and decorations rooted in the country’s rich holiday traditions. Many of the gifts reflect Iceland’s winter folklore, making them meaningful souvenirs that still feel special even in the height of summer.
The Christmas House keeps the spirit of the season alive throughout the year. Plus, it’s an exciting and memorable stop for travelers on North Iceland self-drive tours.
2. Solheimar Eco Village (Golden Circle)
▶” title=”The Top 10 Souvenirs from Iceland – video” style=”border: 0px; overflow: hidden;” class=”lazyload”>
Solheimar Eco-Village sits quietly within the Golden Circle and is well worth a stop. It’s a sustainable and inclusive community that focuses on eco-friendly living, and it’s where you’ll find the Vala shop and art gallery. Here, you’ll find a thoughtful collection of handmade soaps, candles, pottery, woolen items, and artwork crafted by artisans who live in the village.
From handcrafted soaps and candles to pottery, woolen items, and art, each product is made with care and a focus on environmental impact. Solheimar also produces organic food and goods, offering things like locally made jams and herbal teas.
Visiting the village not only supports local artisans but also provides insight into sustainable living practices, making it a perfect stop for travelers interested in meaningful souvenirs. Just a 90-minute drive from Reykjavik, it’s a meaningful detour for travelers exploring the Golden Circle by rental car.
1. UNA Local Product Store (South Coast)
Top of the list for souvenir shopping beyond Reykjavik is UNA Local Product, a standout stop along Iceland’s scenic South Coast. Located in the town of Hvolsvollur, this cozy red Nissen hut offers wonderful gifts and invites travelers into the heart of local life.
Inside, you’ll find lopapeysa sweaters hand-knitted by over 100 local women, all featuring distinctive patterns and the warmth of thick Icelandic wool. The shelves are also filled with charm, featuring herbal skincare, small-batch jams, hand-thrown ceramics, and carefully crafted jewelry. These items reflect the work of local makers and offer a meaningful connection to the community.
The friendly owners often greet visitors themselves, and their cheerful shop dog, Blíða, is always ready for a hello. It’s easy to linger and browse, especially knowing that your purchase supports the people and traditions of South Iceland. Just 20 minutes from Seljalandsfoss Waterfall, it’s a convenient and rewarding stop for those touring the Ring Road.