Stykkishólmur, (pop. 1,150) a town with municipal rights since 1987, but which has been a focal point for the Breiðafjörður settlements for centuries. Fishing and trading centre.

It is named for a large skerry in the harbour, which is protected by the rock island Súgandisey. Car ferry to Brjánslækur on Road 62. Boat trips to the out-lying islands can be arranged.

The oldest house, Norska húsið ("The Norwegian house"), so called because the building materials were imported from Norway, was built by the merchant Árni Thorlacius about 1832. Árni began regular meteorological observations in Stykkishólmur in 1845 and they have continued uninterrupted to this day, the oldest continuous meteorological observations in Iceland.

Árni was a friend and benefactor of the poet Sigurður Breiðfjörð and gave him his support.