Fáskrúðsfjörður is in the centre of East Iceland. 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 great views to the hollow cliff island of Skrúður. The island is home to a colourful birdlife, 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 in east Iceland. The town is famous for its french heritage and it is worth while 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.