Best Restaurants in Iceland: Michelin Stars & Budget Eats

Anyone planning a trip to Iceland quickly learns that eating out in Reykjavik can feel like a puzzle: world-class dining and jaw-dropping prices sit side by side. This guide cuts through the noise by mapping exactly where to eat — from the Michelin-starred tables to the budget-friendly bowls that locals actually queue for. By the end, you’ll know which Reykjavik restaurants deserve your time and which ones to skip.

Best restaurants in Reykjavik (TripAdvisor): 10 ·
Unique restaurants in Iceland (Visit Iceland): 16 ·
MICHELIN-starred restaurants in Iceland: 3

Headline numbers for Iceland’s restaurant scene:

What are the best restaurants in Reykjavik?

Best fine dining in Reykjavik

• Dill Restaurant — Michelin-starred, modern Icelandic cuisine. The longest-running star in the country. (Michelin Guide)
• ÓX Restaurant — Michelin-starred, contemporary cuisine. Received its star in 2022. (Wikipedia)
• Moss Restaurant — Michelin-starred, Nordic cuisine. Located at the Retreat Hotel in Grindavík. (Deluxe Iceland)

Best casual restaurants in Reykjavik

• Matur og Drykkur — Traditional Icelandic dishes in a relaxed setting; frequently recommended alongside Michelin spots. (Wanderlog)
• Sümac Grill — Budget-friendly Turkish cuisine popular with locals. (Wanderlog)

The implication: travelers who skip the tasting menus and head to casual local spots still get an authentic Icelandic meal without the sticker shock.

Best restaurants for local cuisine

• Dill Restaurant — Modern Icelandic, focused on local seafood and lamb. (Deluxe Iceland)
• Matur og Drykkur — Traditional Icelandic recipes with a modern twist. (Wanderlog)
• Fiskmarkaðurinn — The Fish Market, offering Icelandic seafood in an elegant setting. (Visit Iceland)

The pattern: Reykjavik’s best tables all rely on the same raw material — exceptional seafood and lamb — but each kitchen brings a completely different interpretation.

What this means: If you want to taste Iceland’s identity on a plate, skip the tourist traps and head to any restaurant that sources from the local fishing fleet. That’s where the real story is.

Which restaurants in Iceland have Michelin stars?

List of Michelin-starred restaurants in Iceland

As of the 2025 Michelin Guide, Iceland has 3 Michelin-starred restaurants, all located in or near Reykjavik (Wikipedia). The Michelin Guide lists 7 restaurants in the Reykjavik area, including starred and Bib Gourmand options (Michelin Guide).

• Dill Restaurant — Contemporary cuisine. First appeared in Michelin listings around 2019 (Wikipedia).
• Moss Restaurant (at the Retreat Hotel, Grindavík) — Nordic cuisine. Has held Michelin recognition since at least 2017 (Deluxe Iceland).
• ÓX Restaurant — Contemporary cuisine. Received its Michelin star in 2022 (Wikipedia).

History of Michelin in Iceland

Michelin began covering Iceland relatively late — Dill was the first restaurant to receive a star, around 2017. For years, Dill and Moss were the only stars. The addition of ÓX in 2022 signaled growing international attention to Iceland’s dining scene. (Michelin Guide)

The catch: adventures in self-catering and road-side stops often produce the most memorable meals — plan accordingly.

What are the best restaurants in Iceland outside Reykjavik?

Best restaurants in fishing villages

• Gamli Baukur (Húsavík) — Known as the best restaurant in this whale-watching town. Fresh fish and local fare. (Visit Iceland)
• Fjöruborðið (Stokkseyri) — Famous for its langoustine feast, right on the coast. (Wanderlog)
• Kaffi 64 — Restaurant in a remote setting serving local produce. (Visit Iceland)

Restaurants along the Ring Road

• Strikið (Akureyri) — Upscale dining in North Iceland’s capital, with panoramic views. Included in Visit Iceland’s unique restaurants list (Visit Iceland).
• Rub23 (Akureyri and Reykjavik) — Specializes in sushi and grilled dishes, popular with travelers. (Wanderlog)
• Kaffi Hornið (Akureyri) — A bistro with local seafood and a buzzing atmosphere. (TripAdvisor)

Unique dining in remote areas

• Hotel Rangá (Hella) — Fine dining in the countryside, known for its extensive wine list. (Deluxe Iceland)
• Lindin (Borgarnes) — A family-run restaurant with traditional Icelandic lamb dishes. (Visit Iceland)

The pattern: Outside Reykjavik, the best restaurants are almost always attached to small hotels or fishing harbors — kitchens that have to please both locals and a handful of travelers every day.

The catch: Menu availability at these remote restaurants can be inconsistent in winter. Always call ahead between November and March.

Where can I eat in Iceland on a budget?

Affordable restaurants in Reykjavik

• Sümac Grill — Turkish kebab and pizza; local favorite for a quick, cheap meal (Wanderlog).
• Bæjarins Beztu Pylsur — The famous Reykjavik hot dog stand, operating since 1937. A cheap classic. (TripAdvisor)
• Noodle Station — Big bowls of noodle soup, filling and affordable. (Visit Iceland)
• Hafnarfjörður Street Food — Casual options outside central Reykjavik. (Wanderlog)

Budget-friendly dining tips

• Lunch menus at upscale restaurants are often half the price of dinner menus.
• Look for the Bib Gourmand designation in the Michelin Guide — it marks restaurants with good value for money (Michelin Guide).
• Grocery stores like Krónan and Bónus offer affordable sandwiches, yogurts, and snacks.
• Local food halls like Hlemmur Mathöll let you sample multiple cuisines in a casual setting.

Best cheap eats in Iceland

• Bæjarins Beztu Pylsur — $4 for a hot dog, famously visited by Bill Clinton.
• Kronan (grocery chain) — Quick, cheap lunch options under $10.
• Street food stalls around Laugavegur in Reykjavik — fish and chips, lamb soup.

The trade-off: Eating on a budget in Iceland means avoiding the multi-course tasting menus. But a $8 lamb soup from a street food stall can be just as memorable as a $150 tasting menu — sometimes more.

The implication: budget-conscious travelers should lock in their currency exchange early and stick to street food and grocery stores for the best value.

Is Dill Restaurant in Iceland worth visiting?

Dill Restaurant’s Michelin star

Dill Restaurant holds a Michelin star as of 2025 (Wikipedia). It’s the longest-running Michelin-starred restaurant in Iceland, known for modern Icelandic cuisine (Michelin Guide).

Dill’s menu and atmosphere

• Cuisine: Contemporary Icelandic with a focus foraged ingredients and local seafood.
• Atmosphere: Intimate, rustic-chic — a converted warehouse space in downtown Reykjavik.
• Price: Tasting menu around $150–$200 per person, excluding drinks.

Reviews and recommendations

• Travel blogs and official guides consistently include Dill in top lists.
• Travelers on Reddit’s r/VisitingIceland recommend Dill as a must-try for serious foodies, but note that reservations are essential weeks in advance.

Is it worth it? If you’re a food traveler who values the Michelin experience — yes, Dill delivers precisely what its star promises: imaginative cooking that tastes exclusively of Iceland. If you’re on a budget or dining with kids, you’ll likely have a better experience at the more relaxed, less expensive options nearby.

The pattern: Dill’s value depends entirely on your dining priorities — it’s a destination meal, not a casual dinner.

Frequently asked questions

For similar food guides, check out Best Arepa de Choclo Near Me and Best Crema Catalana Near Me.

For travelers deciding where to eat in Iceland, the choice is really about priorities. If you’re a food traveler who budgets for a once-in-a-lifetime tasting menu, book Dill or ÓX and plan your trip around the reservation. If you’re exploring Iceland on a budget, skip the starred restaurants entirely and hunt down the street food stalls and casual bistros — the real culinary story of Iceland is in its seafood soup and lamb stew, not the foam on the plate.