Álafoss

Oh my! A dream come true for yarn lovers and craft lovers! I couldn’t have asked for anything more! Apparently they do offer tours at the local factory on how to make yarns so you will have to book or check in advance, but hey! I will do it the next time I visit there! Also, there is a knife maker and all other kinds of crafts so definitely check that out! Can Easily spend a day here.. and omg! The shop itself is amazing! There is a small waterfall towards the back of the shop where you can sit and sip black coffee.. the shop sells only black coffee without milk or sugar.. summer must be a delightful time to see this!

Located in a small and yet beautiful town, the directions was not clear where to go, we parked at the very top where Google Map says to and barely hear the falls, so we thought it was far. We had to ask a local and was very condescending but that’s okay she told us where to go. If you see the graffitied water tank, walk towards that and you will see the path to go down the small but yet picturesque falls. Also go down by the Art Store you can park there and walk towards the Nordic Store and you will see the spot where you can view the it all.

Went for a walk to find the waterfall, absolutely wonderful even in the rain.
Continued walking around, popped into the famous wool shop and headed to the hills. Fantastic and free

Go here for knitted items made in Iceland from Icelandic wool. They even have their own proprietary patterns! Off the beaten path, which makes it even more charming. We lucked out and hit them up on a Friday; as of October 2023 this location is closed on weekends but have other locations in Reykjavik. Loved this place and I was a hero to my travel companions for “finding” it ( for which I thank Reddit). The shop owner/ manager was full of info about sweaters and wool and everything else about Iceland! Great experience. And oh yeah—don’t forgot to check out the waterfall right around the back of the building.

Great selection of souvenirs and wool clothing with fair prices for tourists. Also stop by Palli Knifemaker next store if you’re in the area!

Great products! We bought a sweather and a kit to knit an other one. Now I'm learning how to knit in order to have my sweater with their icelandic wool!

I love stopping here for yarn when I visit home, also the best prices on knitted wear!!

Pretty good store with lots of knitted items made from Icelandic wool, some in-house items as well as other brands. In truth, you can probably find similar items in other stores, but they were running some sales when we went for a visit. It's a cool store to look around too, and is roomier than some that are in Reykjavik.

The best yarn stop we visited in the Reykjavik out of 4. There is clear history with the facility and a good selection of real Icelandic sweaters as well as kits to make them yourself. (The complete sweaters are priced lower than at the wool guild in Reykjavik). It also has a full self service "Cafe" (good for waiting partners), a neat display of old equipment, and is situated in a gorgeous and walkable area of the countryside. You can walk to a knife shop and a horse corral. I'd recommend the stop if you get outside the city.

I love this yarn store and the little area where it is. Fans of Sigur Ros will want to visit the area where they recorded an album, and those who enjoy knitting will want to visit to get awesome cheap yarn! I bought some for a homemade scarf and it is beautiful, finely dyed and expertly crafted.

Great little store just barely off the beaten path to find some excellent variety of yarn! Half the store is yarn made locally so you can find whatever you need to make a homemade Icelandic gift.

Large selection of ready made goods including handmade Icelandic woolen sweaters (cheaper than other stores) and wool supplies. The store manager was very helpful with patterns and selecting colours, she went above and beyond to make sure ai knew what I was buying worked for my tastes and preferences. The wool is stunning with a wide range of beautiful colours in different weights. 100g of their worsted weight wool was ~£4-5 which I would consider very well priced.

This store is for those who love woolen goods. There you can buy yarn for knitting. So it's really nice to walk around and see a waterfall that is right there. Also there are knives carpenter who is interesting to visit.

Such a wonderful place!! Extremely friendly and helpful staff. We purchased several blankets here for family members. The prices are about the same as other shops but the selection is much better!

Absolutely beautiful handmade sweaters that are made in Iceland. Be careful of places that sell knock offs as there are many and reikjavik. Once you see and feel a real Icelandic sweater you can definitely tell the difference. This store has a huge selection and is reasonably priced. I highly recommend if you are looking for a real Icelandic sweater.

Beautiful little store across the street from the Sigur Ros recording studio! I made sure to get some authentic Icelandic wool!

Great store for Icelandic wool products. Handmade in Iceland. Definitely would buy here. People are very friendly and helpful. The only thing is that being a tall broader fella the sizes are limited.

Bought a sweater. It's awesome. Talk to the person working the counter! Learn stuff! They'll point you to the real hand knit Iceland sweaters (and not the ones made in China). Worth the extra money. Also you can look at the hand made knife gallery next door and the waterfall. Just do yourself a favor and make a quick stop there.

Excellent value wool shop and knitwear. A few other craft shops much cheaper than city centre. Highly recommended if you are into your crafts. Also sells unspun wool.

Good stuff! Bought a cap and lava salts