The capital of Iceland is a modern city with a small population.
The capital of Iceland, Reykjavik, is a modern city with a population of just over 120,000 people. Reykjavik is also the northernmost capital of sovereign state at 64°08N, just south of the Arctic Circle. This location also means long light summer, while of course in winter the days are shorter.
It is a small town and easy to navigate and walk in. It is built around a harbour and the main city centre is chiefly a few streets. There is a design area to visit and great museums and parks to explore. It is a beautiful city and there are many walking tracks that you can follow, even a circular route around the city and to the beaches. You can also hire bikes at several places around town to explore the city, available at the main bus stop or down at the harbour.
Be sure to visit the Aurora Reykjavik Museum in the heart of the city. The museum opened in May 2013, it is Iceland's first educational and recreational Northern Lights Center where multimedia is used to explain when, why and how the Northern Lights work, with the highlights being large HD projection of the Aurora's.