The village of Eskifjörður lies along the north shore of Eskifjörður fjord, a northern arm of Reyðarfjörður fjord. One charming aspect is the red-coloured, well-preserved fishing sheds lined up and down the shore; most of these are Norwegian in origin and are still in full use. By renting a boat, you might try exploring the calm fjord waters and catch a fish, which can even be seen feeding at the surface. Although you are unlikely to reel in a shark, the shark processed in Eskifjörður is a higly regarded Icelandic speciality.

Not long before the turn of the century, exploratory drilling here was rewarded by enough hot water reserves, to make Eskifjörður one of the few places in East Iceland to heat its homes and fill its swimming pool - Fjarðabyggð's newest one - geothermally.

One of Iceland's best skiing areas, Oddskarð, is only a ten-minute drive from the town itself. You will find two larger lifts, a children's lift and a ski school for children, or you can tade advantage of a groomed trail for cross-country skiing and enjoy refreshments in the cabin.

While having already served as a commercial point in previous centuries, Eskifjörður was first officially recognised for trading in 1786. Trade has continued constantly here since 1798, when the Danish trader Örum & Wulff began operations in Iceland and built the first store in the village. The number of residents did not climb significantly though until the Norwegians began fishing for herring off the East Fjords of Iceland in the latter half of the 19th century, raising the population to 228 by 1902. Today, the town has a population of about 1,060.

The main industry is fishing and fish processing, not least driven by one of Iceland's leading fishing companies, Eskja hf. Eskifjörður serves as a key centre for law enforcement in East Iceland.