A New Iceland Lagoon Features Cascading Pools, Tiered Hot Springs, and Foraged, Local Cuisine

The relaxing outpost within the island country’s Golden Circle is the latest in a string of new geothermal spa retreats that have recently opened in Iceland.

The sauna at Laugarás Lagoon looks out on a steaming two-tiered hot springs featuring a waterfall design feature

The sauna at Laugarás Lagoon looks out on the two-tiered hot springs that are connected by a waterfall design feature.

Photo by Hlin Arngrimsdottir/Courtesy of Laugarás Lagoon

In this Article

From the iconic Blue Lagoon near Reykjavík, with its ethereal turquoise waters nestled between black lava fields to the rustic Secret Lagoon in Flúðir, where steam vents and mini geysers surround the geothermal pool, Iceland has no shortage of incredible natural and man-made hot springs.

The Nordic country is also renowned for its waterfalls: There are estimated to be more than 10,000 spread across the island nation. And for the first time, a waterfall feature is being combined with a geothermal pool, at Laugarás Lagoon, which opened this month. The central design feature of the new wellness venue is a nearly 22-foot-wide cascade situated between its lower and upper pools.

Location of Laugarás Lagoon

On the banks of the Hvítá River in the village of Laugarás, the new lagoon is just over an hour outside of the capital, Reykjavík, and is situated within the Golden Circle, a popular 200-mile sightseeing route that encompasses Þingvellir National Park, the Geysir Geothermal Area, and Gullfoss Waterfall.

The wellness venue features a two-tiered hot spring (where the water is maintained between 100 and 104 degrees Fahrenheit), two saunas, two swim-up bars, a cold pool, an on-site spa, and various lounging areas.

The grotto area of Laugarás Lagoon in Iceland with rocky boulders lining a steaming dipping pool and a wooden structure in the background with trees in fall hues behind it

A more secluded grotto area with seating offers a bit more privacy than the main dipping pools.

Photo by Hlin Arngrimsdottir/Courtesy of Laugarás Lagoon

Food and dining: Ylja Restaurant

Beyond the water and spa features, the property is also home to the latest culinary venture from celebrated Icelandic chef Gísli Matt, Ylja Restaurant. Matt’s farm-to-table menu incorporates ingredients foraged in the area, such as Icelandic herbs, various seaweeds, and berries, as well as products sourced from local ranches, fisheries, and geothermal greenhouses.

“This is cooking rooted in tradition but shaped by modern techniques, with many dishes prepared over open fire,” the company shared in a press release. “Every element focuses on sustainability: fermentation and preservation minimize waste while supporting nearby farmers and producers in a circular food system that respects the land.”

Some of the dishes include a grilled lamb leg with peppers, pearl barley, and hazelnuts, and slow-cooked cod with potato mash, herb sauce, and mustard greens. There’s also a grab-and-go section for those who are short on time or are looking for some snacks or picnic items for their Ring Road road trip.

The Ylja Restaurant at Laugarás Lagoon with marble-topped four-top tables flanked by curved wooden chairs and large windows with curved exterior design features

In between soaks and sauna visits, visitors to Laugarás Lagoon can dine on innovative Icelandic cuisine at the on-site Ylja Restaurant.

Photo by bHlin Arngrimsdottir/Courtesy of Laugarás Lagoon

Packages, pricing, and how to visit

Laugarás Lagoon offers three packages for visitors, including the Birki, which provides unlimited access to the lagoon and its facilities for 6,900 Icelandic krónur (approximately US$57, based on current conversion rates), the Lerki, which adds a complimentary towel rental and a drink at the lagoon bar for 9,400 Icelandic krónur (about US$77.64), and Ösp, with perks that include a two-course meal and a private changing room for 15,900 Icelandic krónur (about US$131.33).

During the winter season (October through May), Laugarás Lagoon is open daily from 10 a.m. to 9 p.m. And during the summer season (June to September), it will have slightly longer hours, from 10 a.m. to 10 p.m., daily. The lagoon welcomes children ages eight and older, and all ages can dine at Ylja Restaurant.

Other notable hot spring openings in Iceland

This is the latest addition to a string of new geothermal lagoons unveiled in Iceland in recent years. In April 2021, the Sky Lagoon opened five miles outside of Reykjavík, with an infinity-edge geothermal pool, a cold pool, a sauna, a steam room, and other spa facilities. In May 2022, Forest Lagoon was unveiled among a grove of birch and pine trees in Akureyri, in the north of Iceland, with two pools, a Finnish dry sauna, and views of the Eyjafjörður fjord.

This story was originally published in July 2025, and was most recently updated on October 16, 2025.

Bailey Berg is a Colorado-based travel writer and editor who covers breaking news, trends, sustainability, and outdoor adventure. She is the author of Secret Alaska: A Guide to the Weird, Wonderful, and Obscure (Reedy Press, April 2025), the former associate travel news editor at Afar, and has also written for the New York Times, the Washington Post, and National Geographic.
From Our Partners
Sign up for our newsletter
Join more than a million of the world’s best travelers. Subscribe to the Daily Wander newsletter.
More from AFAR