Saegreifinn (The Sea Baron Restaurant)

Located in the heart of Reykjavík’s old harbor this cozy fish shack owned an operated by a retired fisherman and coastguard chef served up some of the best lobster soup you will ever taste.  The place is very casual (line up to place your order at the counter and then scramble to find a seat at the outdoor picnic tables, cozy back room with shared tables, or more spacious upstairs dining room), but the seafood is fresh and delicious.  Children will enjoy the bountiful kitschy décor, which includes taxidermy animals and a life-size wax sculpture of the owner himself.

Note: There can be a long line on the weekends, so come early or late to beat the rush.