The village is situated in the valley of the river Reykjadalsá, called Reykholtsdalur.
Here lived in the Middle Ages one of the most important persons in Icelandic history: Snorri Sturluson. He was a famous poet and politician whose records of the Old Norse language and mythology of medieval Iceland are invaluable to modern scholars. He lived and died here. Remains of his farm and a bathroom with hot pot and a tunnel between the bath and the house can still be visited.