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Keahotels is one of the largest hotel chains in Iceland operating ten hotels. Together the hotels provide over 800 rooms and service travelers, local and foreign, all year round.

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What to Do in Iceland in July

July is hands-down one of the best months to visit Iceland. Why? Think 24 hours of daylight, lush green landscapes, puffins galore, and more waterfalls than your phone storage can handle. If you’re planning a summer trip to this island of fire and ice, buckle up—here’s your ultimate guide to having a blast in Iceland in July.

What’s the Weather Like in Iceland in July?

You might be heading to Iceland in the middle of summer, but don’t expect a tropical vacation—this is Iceland, after all. July brings the warmest and most stable weather of the year, but it's still refreshingly cool by most standards.

Average temps:

  • Daytime: 10–15°C (50–59°F)
  • Warm days: Can hit up to 20°C (68°F), especially in the south
  • Nighttime: Rarely drops below 7°C (45°F), though remember—there’s not much actual “night”

Expect variety:
You could wake up to sunshine, get hit with a sudden rain shower by lunch, and see low-hanging fog by dinner. The best approach? Dress like an onion—layers are your best friend. Waterproof gear is essential, even in July, because rain can show up anytime (and often only lasts 10–20 minutes).

How Crowded Is Iceland in July?

July is peak season in Iceland—so yes, it can get a bit crowded. But don’t panic: while popular spots like the Golden Circle and the Blue Lagoon may feel busy, there’s still plenty of solitude to be found just a bit off the beaten path.

What to expect:

  • Popular sites: Expect tour buses and lots of selfie sticks at major attractions between 10 a.m. and 4 p.m.
  • Hidden gems: Early mornings, late evenings (thanks, Midnight Sun!), and lesser-known regions like the Eastfjords or Westfjords are perfect for escaping the crowds.
  • Book early: Rental cars, campsites, and hotels get snapped up quickly. If you're planning a July trip, start booking months in advance.

Pro tip: Even during peak season, Iceland’s raw, vast nature means you’ll rarely feel truly overwhelmed by people.

What to Pack for Iceland in July

Packing for Iceland in July is a balancing act between preparing for sunshine and being ready for sudden sideways rain. The weather changes fast—so pack like a practical adventurer.

Essentials:

  • Waterproof jacket and pants (seriously, never leave home without these)
  • Warm layers: wool or fleece tops, thermal base layers
  • Lightweight t-shirts and hiking pants for sunny days
  • Sturdy, waterproof hiking boots
  • Swimsuit (for hot springs!)
  • Sleep mask (you’ll thank yourself—midnight sun means bright nights)
  • Reusable water bottle (Icelandic tap water is some of the purest in the world)
  • Power adapter (Iceland uses the standard European plug, Type F)

You can also check out our more extensive packing guide here.

Experience an Icelandic summer festival

Icelanders know how to celebrate summer with serious style—and music, and art, and sheep. If you’re in Iceland in July, try to time your trip with one of these unique events:

Siglufjörður Folk Music Festival
Dates: Early July
Location: Siglufjörður (North Iceland)
Traditional Icelandic music, folk dancing, and international performers in a charming fishing village.

Eistnaflug Metal Festival
Dates: Mid-July
Location: Neskaupstaður (Eastfjords)
A legendary gathering for fans of heavy metal in the most unexpected, peaceful village imaginable.

Reykjavik Fringe Festival
Dates: Late June to early July
Edgy, experimental, and full of surprises—from stand-up comedy to interactive art installations.

Top Outdoor Experiences in Iceland in July

If you're dreaming of an unforgettable Iceland adventure, July is when nature rolls out the red carpet. The days are long, the weather is mild (by Icelandic standards), and every corner of the country—from the sea cliffs to the highlands—is ripe for exploring.

Spot puffins in the wild
Puffins are Iceland’s unofficial summer mascots. These clumsy little charmers arrive by the thousands to nest in cliffside colonies throughout July. See our puffin spotting guide here.

Embark on an epic road trip
The Ring Road circles the entire country and is fully navigable in July, making it perfect for a road trip. Picture black sand beaches, thundering waterfalls, moon-like lava fields, and sweeping fjords—all connected by scenic highways. Don’t skip the lesser-traveled Eastfjords or dramatic Westfjords if you crave solitude and raw beauty.

Hike through otherworldly landscapes
The highlands finally open up in July, revealing colorful mountains, steaming vents, and glacial rivers. Hike the iconic Laugavegur Trail, wander through Thórsmörk, or tackle a day hike in Landmannalaugar, where the rhyolite hills look like something from another planet.

Walk on ancient ice
Want to hike across a glacier in the middle of summer? You can. Tours on Sólheimajökull and Vatnajökull offer a chance to strap on crampons and explore deep crevasses and shimmering blue ice. Some guides even take you into natural ice caves, depending on conditions.

Soak in geothermal hot springs
After a day of hiking, nothing beats slipping into a naturally heated pool surrounded by mountains or lava fields. The famous Blue Lagoon and Sky Lagoon near Reykjavik are great intros, but the real magic is in the wild:

Pro tip:
Plan a 7–10 day itinerary and you can do it all: watch puffins dive off cliffs, trek in volcanic valleys, walk across ancient glaciers, and unwind in warm, mineral-rich waters under the golden glow of the midnight sun.