Þingeyri (pop. 350) takes its name from the Thing or ancient assembly whose sacred site was said to be enclosed by walls at either end of Mt. Sandafell, which rises above the village. The oldest residents still remember the walls and on a lawn in the town are the ruins of an ancient booth used by visitors to the assembly, which have been declared a historical monument. Þingeyri has been a trading port since the 1700s. During the last century the French wanted to establish a colony there to support their extensive fishing fleet in the region, but were turned down. In Þingeyri a famous iron foundry is still in operation whose reputation at the beginning of the century even reached beyond the shores of Iceland.

Today Þingeyri is a lively and modern fishing port and tourist centre. Mt. Sandafell can be ascended by car for a magnificent view of the fjord, and of the mountain ridge which separates Dýrafjörður from Arnarfjörður and is often called the “West Fjords Alps,” although its alpine peaks are much lower than their brothers in Europe. The ridge is crowned by Mt. Kaldbakur, at 998 meters the highest peak in the West Fjords.