Fáskrúðsfjörður is often called the French town in Iceland.

Fáskrúðsfjörður is in the center of the east fjords, in between peninsulas Vattarnes and Hafnarnes. At the bottom of the fjord, there is a grassy valley with lovely arctic woodlands. The route from Reyðarfjörður along the coast is very scenic and should not be missed. It offers excellent views of the hollow cliff island of Skrúður. The island is home to a colorful birdlife, with the unique wonder the 'Puffin Cave' sheltering thousands of puffins and a great colony of Gannets that can be seen plunging like arrows into the water. The town at the bottom of the fjord goes by the name of Búðir, but everyone calls it Fáskrúðsfjörður.

The town became a trading post in 1880. From the latter part of the 19th century until 1935, the town was the main hub for French fishermen off East of Iceland. The town is famous for its French heritage and has a strong connection to its French counterpart, Gravelines. It is worthwhile to visit the French Museum and learn more about these historical connections. There used to be a French consul, a French hospital and a French chapel. It is also believed that France had a say in the fact that the district doctor was positioned in Búðir. The village road signs are also in French. Don't forget to visit the local Café which is known for great cakes and refreshments that can be enjoyed in cozy surroundings. An eligible place to stay is the farm Tunguholt.

Just outside the town is a graveyard, the burial place of 49 known French sailors. The former French hospital, erected in 1903 and notorious for being haunted, is currently being restored to its former glory.
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