3-Day Budget Guide to Egilsstadir: The Backpacking Epicenter of East Iceland
Egilsstadir often serves as a quick pitstop on the Ring Road, but for the budget backpacker, it is a goldmine of free natural wonders and affordable hostel culture. Nestled on the banks of the Lagarfljót river, this town offers a slower pace of life where the main currency is the spectacular scenery rather than your Icelandic Króna. By sticking to grocery store meals and utilizing the region's vast network of free hiking trails, you can experience the raw majesty of East Iceland on an ultra-lean budget.
As part of a longer epic journey through the North Atlantic, three days in Egilsstadir allows you to dive deep into the local folklore and tectonic landscapes. Forget the expensive tour buses; here, your own two feet and a sturdy pair of boots are your best assets. Whether you're hunting for the legendary lake monster or trekking through the country’s largest forest, this itinerary focuses on the best free attractions while keeping your daily spend well within the backpacker sweet spot.
Day 1: Egilsstadir - Forests and Folklore
Hallormsstaðaskógur Forest
Begin your journey in Iceland's largest national forest. Just a short hitch or drive from the town center, this lush area features over 40km of marked trails. It's completely free to enter and offers a rare glimpse of Icelandic woodlands, with paths leading to the beautiful Lambafoss waterfall.
Lake Lagarfljót Viewpoint
Walk along the shores of this massive glacial lake. Local legend says a giant wyrm (monster) lives in the depths. There are several picnic spots along the bank where you can eat a pre-packed lunch from the local supermarket while scanning the water for ripples.
Egilsstaðakirkja
Visit this modern Icelandic church located on a hill overlooking the town. The architecture is sleek and minimalist, offering a peaceful space for reflection and a great vantage point for photos of the surrounding mountains without spending a dime.
Bonus Supermarket Grocery Run
In Iceland, eating out is the quickest way to blow your budget. Head to Bonus (the yellow pig store) to stock up on Skyr, rye bread, and pasta. This is the social hub for backpackers looking to prep communal meals at the hostel.
Day 2: Egilsstadir - Waterfalls and Local Life
Fardagafoss Hike
Located just on the edge of town, this hike is a backpacker's dream. The trail is moderately steep but leads to a stunning waterfall where you can actually walk behind the curtain of water. There is a small box at the top where hikers traditionally leave their names.
East Iceland Heritage Museum
While most attractions are nature-based, this museum offers a deep dive into the local culture and the history of reindeer in East Iceland. It’s one of the few paid activities, but the ticket price is modest and the indoor warmth is a welcome break for budget travelers.
Gufufoss (The Steam Falls)
A short trip up the mountain road toward Seyðisfjörður leads you to this powerful waterfall. It resembles the famous Skógafoss but without the massive crowds. It's a perfect spot for photography and experiencing the power of Icelandic nature for free.
Egilsstaðir Swimming Pool
Skip the expensive blue lagoons and head to the local public pool. For a few dollars, you get access to hot tubs, a sauna, and a chance to mingle with the locals. It is the most authentic and affordable way to relax your muscles after a day of trekking.
Day 3: Egilsstadir - The Great Trek
Hengifoss and Litlanesfoss Hike
Take the 30-minute drive or bus to the trailhead of one of Iceland's tallest waterfalls. The hike up is iconic, passing Litlanesfoss—which is surrounded by spectacular basalt columns—before reaching the red-layered cliffs of Hengifoss. This is a must-do free activity for any visitor.
Skriðuklaustur Cultural Center
Located near the base of the Hengifoss trail, this historic site was the home of a famous Icelandic author. While the museum has a fee, the grounds and the ruins of the 16th-century monastery are free to explore and offer great historical context to the valley.
Backpacker Lounge at Tehúsið
Return to town and head to Tehúsið Hostel. It’s the heart of the backpacking community in the east. Even if you aren't staying there, the bar area often has happy hour specials and is the best place to swap stories with other travelers on epic journeys.
Salt Café & Bistro
For your final night, treat yourself to a meal at Salt. While Iceland is pricey, their pizzas and burgers are some of the most budget-friendly filling options in town. It’s a popular local hangout with a relaxed atmosphere perfect for a final evening.
Best Time & Weather
The best time to visit Egilsstadir for a budget backpacking trip is during the shoulder seasons of June or September. During these months, you'll enjoy long daylight hours for hiking and milder weather, but you’ll avoid the peak July and August prices. Winters are harsh and many hiking trails become inaccessible without expensive specialized gear, though it is the best time to see the Northern Lights for free right from the town center.
Currency & Money
The local currency is the Icelandic Króna (ISK). Iceland is famously a cashless society; you can pay for even the smallest items, like a single piece of fruit or a public toilet entry, using a contactless card or mobile pay. Tipping is not expected and service charges are always included in the price. To save money, always opt to pay in the local currency (ISK) on card machines to get the best exchange rate from your bank.
Getting Around
Egilsstadir is small enough to navigate on foot, but the surrounding attractions require wheels. For the budget-conscious, hitchhiking is very common and generally considered safe along the Ring Road. If you prefer more reliability, look into the Strætó public bus system, though schedules are infrequent. For those on a 14+ day epic journey, renting a small economy car between a group of four people is often the most cost-effective way to reach the trailheads of Hengifoss and Hallormsstaður.
