Grundarfjörður lies on the northern side of the Snæfellnes peninsula between Stykkishólmur and Snæfellsbær and is surrounded by the mighty Snæfellnes mountain range. Grundarfjörður has been a popular port for boats and ships for centuries – this is due to the fact that it has the best natural harbour on the Snæfellsnes peninsula.

Although the Grundarfjörður area was settled before the 1700’s, the town of today started taking shape in the 1940’s. The harbour area is the centre of the main occupation of the town, which is fishing and fish processing. Seagulls and sea ducks add life to this busy area. The population of Grundarfjörður is 950. There is a good selection of shops and stores as well as a hotel and two restaurants. The local handcraft gallery, Gallerí Grúsk sells products and wares made by the locals. It is open in the summer season and provides tourist information brochures for tourists and visitors.

Grundarfjörður has the unique situation of being a 10-minute walk away from unspoiled countryside. There are many hiking trails in the area which vary in levels of difficulty from an energetic climb up the mountains for the seasoned hiker to a pleasant family stroll over the heaths. Every saturday are a organized hikingtours during the summer.