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Touted as the home of the ‘hidden folks’, Hafnarfjörður, which translates to ‘harbour fjord’ and lies 11 km south of Reykjavik, is a port-town which is the third-largest and third most-populous town. Known as Hafnarfjarðarkaupstaður officially, it has been the country’s busiest natural harbour, with merchants sailing from various parts of Europe since early days.
Touted as the home of the ‘hidden folks’, Hafnarfjörður, which translates to ‘harbour fjord’ and lies 11 
km south of Reykjavik, is a port-town which is the third-largest and third most-populous town. Known as Hafnarfjarðarkaupstaður officially, it has been the country’s busiest natural harbour, with merchants sailing from various parts of Europe since early days.
The Book of Settlements or Landanamabok has records of early voyages to the port since the late 14th century. While German records show traders coming to Hafnarfjörður in 1391, it is said the British began trading during the 15th century, after which they were driven away by German merchants. Some German accounts during 1486 also highlight the advent of traders from Hamburg. In fact, during that time Hafnarfjörður became an official member of the Hanseatic League. After 1602, trade in the port-town was subjected to the whims of Danish rulers, who ruled Iceland until the latter part of the 18th century. ‘Sir Bjarni’ or Bjarni Sívertsen, also known as the ‘Father of Hafnarfjörður’ who settled here in 1793 is said to have had a great influence on setting up of commercial activities in the town and also the national and international trade. Bjarni’s house, built in 1803 in Vesturgata was later transformed into a museum, Sívertsenshús. 
The town also has Iceland’s first hydrological power plant, built in 1904 and a 1.2 km-long aluminium smelter, often referred to as Iceland’s longest building. Hafnarfjörður is known for its Viking festival held every June, its serene harbour, family-run restaurants, museums, including Hellisgerði Lava Garden Hafnarborg Art Museum, Hamarinn cliff, Keilir golf course and for producing the popular musical bands of Iceland.
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