Reykjavik's compact size, however, belies its worldly status. It is in every way a world capital, albeit a small one. Here is where you'll find all of Iceland's national glory, its theaters, night life, and much of its history. In recent times, the city became prominent on the world stage when American President Ronald Reagan and Soviet General Secretary Mikel Gorbachev met here in a summit that many say marked the beginning of the end of the Cold War. 

 Although people have lived here since settler Ingolfur Arnarson first arrived in the late 9th century and named the site “smoky bay” after noticing some geothermal fog nearby, the old homesteads are long gone, having been made of perishable earth, wood, and grass. To get a good idea of the lay of the land, a perfect first stop is Hallgrimskirkja, the towering church that stands above the famous statue of explorer Leif Eiriksson. Climb the tower on a clear day, and you can see for hundreds of miles, a phenomenon caused by the amazingly clear Arctic air. 

Most of what has been preserved of Old Reykjavik lies along Adalstraeti (“main street”), which was once the site of a short-lived 18th century crafts village. Other notable older structures nearby are the Government House, the National Gallery, and the Althing (parliament house), which was relocated from Thingvellir in 1798. Those interested in Viking and Icelandic history will want to visit the National Museum, where virtually all of the country’s archeologic treasures are stored, among them an elaborate 13th century door. More modern structures include “the Pearl” (a revolving restaurant build atop massive hot water tanks) and the new Town Hall. As far as modern art goes, there is the Kjarvalsstadir Municipal Gallery and the Asmundur Sveinsson Sculpture Gallery, with its outdoor garden filled with giant, Piccasso-like sculptures.