Located 250 mi/400 km northeast of Reykjavik, Egilsstadir is the commercial hub of eastern Iceland, and the town is a good place to get supplies while visiting the eastern fjord area (or for overnighting if you're circling the island). Keep an eye out for reindeer in this area.
There are a few points of interest not far from town, such as Hallormsstadur National Forest, the largest forest in Iceland, with its 25 mi/40 km of marked footpaths. There you can catch sight of local fowl such as the willow ptarmigan, as well as forage for edible mushrooms and berries. Also within a drive is Hengifoss, the third highest waterfall in Iceland; the giant tuff boulders of Storurd; and Geirsstadakirkja, a reconstruction of a 1,000-year-old church. Skriduklaustur, a manor estate dating back to the 15th century, is a major historic point of interest. This area was once home to a monastery, and in 1939 the writer Gunnar Gunnarsson lived there for a time before donating it to the state. It now houses various cultural events and guided tours.
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