Akureyri

Akureyri is the regional capital of northern Iceland and is located at the bottom of the fjord Eyjafjördur. It's only 100 km south of the Arctic Circle. It is surrounded by mountains, most of them Súlur 1,213 meters above sea level, and Hlíðarfjall at 1,116 meters above sea level. The city is small and industrial. It is a historically important spot because it hosted the allied air forces during the Second World War. The old part is called "Innbaer" and is full of shops. The red stoplights in the city are shaped like hearts. It is quite an interesting feature.

Akureyri was a smaller Reykjavik, had a very nice feeling and had some nice restaurants. I recommend stopping in or staying, on the way to Lake Myvatn!