By Kristina Smith
There’s a moment here when the light shimmers off moss-covered lava fields and lingers long into the night, dissolving the line between day and dream. Now, in the heart of Iceland’s famed Golden Circle, a new destination is inviting travellers to sink even deeper into that restorative glow.
Welcome to Laugarás Lagoon, Iceland’s newest geothermal sanctuary, a two-story, design-forward wellness destination that combines thermal bathing, forest saunas, and farm-to-table dining by one of the country’s most celebrated chefs.
A New Chapter in Icelandic Bathing Culture
Laugarás Lagoon sits on the banks of the Hvítá River in the village of Laugarás, a lush pocket of Iceland known for its geothermal activity and local farms. While the country is known for its natural hot springs and sleek spas, this addition represents something different: a reimagining of Iceland’s long-standing bathing culture as a holistic wellness experience that engages all the senses.
Developed by Mannverk, owned by Norverk, and operated by Laugarás Lagoon ehf., the lagoon encompasses 10,000 sq ft of therapeutic waters maintained between 38 and 40°C. Designed by T.ark Architects with engineering by Efla, it’s Iceland’s first two-level geothermal lagoon, and the first to feature a cascading waterfall. This architectural centrepiece sends a gentle roar through the forested air.
The lagoon’s design philosophy mirrors Iceland’s conscious balance of wilderness and modernity. Large glass panels open to panoramic views of the Hvítá River, while locally sourced wood and stone are designed to blend into the natural surroundings.
Lighting by Hildiberg Design and interiors by Anthony Bacigalupo, in collaboration with T.ark, complete the picture: clean lines, natural textures, and a sense of calm that flows from one space to the next.
Immersed in Nature
Forget everything you think you know about Icelandic lagoons. At Laugarás, thermal bathing isn’t a quick dip—it’s a ritual of renewal. Guests can move between two saunas (one dry, one wet), plunge into a cold pool, and retreat to a secluded grotto surrounded by forest.
Those who want to linger can wade up to one of two swim-up bars, order a drink, and watch the river drift by. Even the smallest details—from the scent of local birch oils in the changing rooms to the warm glow of the lighting after sunset—are designed to encourage deep relaxation and reconnection with nature.
In winter, this connection reaches its peak. Laugarás Lagoon sits in one of Iceland’s best locations for viewing the Northern Lights, just 94 kilometres from Reykjavík and nestled between Geysir and Gullfoss. Imagine sinking into the water as ribbons of green and violet ripple across the sky; warmth below, wonder above.
Packages that Invite You to Slow Down
Visitors can choose from three signature experiences, each named after a native Icelandic tree:
- Birki (Standard)—From approx. £40 per person. Includes full access to all outdoor wellness areas, personal changing rooms with lockers and vanity stations, and premium hair and body products.
- Lerki (Premium)—From approx. £55 per person. Adds plush towel service and a drink of choice at the swim-up bar.
- Ösp (Deluxe)—From approx. £93 per person. Includes everything in Lerki, plus a two-course seasonal menu at Ylja Restaurant and a private changing booth.
Each package is designed to encourage mindful immersion rather than hurried sightseeing —a shift toward slow wellness travel rooted in Iceland’s deep connection to the land.
Wellness on a Plate: Ylja Restaurant
In Iceland, wellness is as much about nourishment as it is about nature. That philosophy shines through in Ylja Restaurant, the lagoon’s signature dining space led by chef Gísli Matt.
Gísli rose to prominence with SLIPPURINN, his restaurant in Vestmannaeyjar that helped define modern Icelandic cuisine. Now, he brings that same ethos of creativity and sustainability to the Golden Circle.
At Ylja—which means “warmth” in Icelandic—Gísli has built a concept rooted in hyper-local sourcing and seasonal balance. The menu features wild herbs, seaweeds, berries, and ingredients from nearby farms, fisheries, and geothermal greenhouses in the Laugarás region.
“The Laugarás area has such a unique character; the possibilities with geothermal heat are inspiring,” says Gísli. “What excites me most is the chance to work with the incredible producers in the region, who are growing and raising things with so much care.”
He adds, “I also feel a strong urge to prove that a project of this scale can be done in true partnership with nature—minimizing waste and showing that sustainability and ambition can go together.”
Every dish tells that story. Many are cooked over an open fire, using fermentation and preservation techniques to reduce waste and celebrate Iceland’s resourcefulness. It’s a form of culinary mindfulness—honouring both the ingredient and the environment that produced it.
From Daylight to Firelight
Ylja’s rhythm mirrors the lagoon’s natural flow.
By day, guests can enjoy lighter fare such as the Ylja Soupboard—a comforting spread of herbal pesto, tomato salad, and freshly baked bread—or two-course seasonal options like slow-cooked cod with dulse seaweed and herb sauce, or grilled lamb leg with pearl barley.
As night falls, Ylja transforms into a fine-dining experience, offering two five-course tasting journeys that evolve with the harvest. Cured Arctic char with horseradish cream, slow-cooked cod loin with herbal sauce, or grilled celeriac “steak” with almond miso might appear on the menu, depending on the season’s bounty.
The wine list is equally thoughtful, spotlighting organic and natural wines from small-scale producers whose stories mirror the restaurant’s values.
Reservations are encouraged, helping the kitchen plan precisely and minimize waste—a simple act that supports Ylja’s circular, low-impact approach.
Cocktails That Taste Like the Landscape
The beverage team at Ylja has distilled Iceland’s terroir—literally—into a menu of creative, zero-waste cocktails.
- The Laugarás Highball blends Himbrimi pure Icelandic gin with lemon verbena, wood sorrel, rosemary, lavender, and sage. I’m told each sip is like “like a breath of Laugarás.”
- Spice & Smoke twists the classic margarita with tequila, green tomatoes, and fermented brine, clarified with birch-smoked milk.
- Coffee & Rye reinvents the espresso martini with brown-butter–washed Rye Brennivín and coffee liqueur made from spent grounds, topped with caramel foam from leftover filtered coffee.
Other standouts include Strawberries & Sorrel, made with greenhouse-grown strawberries and vanilla skyr–washed Katla Vodka, and Lemon Verbena & Lavender, a local take on the martini featuring Himbrimi Gin infused with herbs from nearby farms.
Each sip is a reminder that Iceland’s ingredients, from berries to botanicals, are more than flavours. They’re part of a story about place, resilience, and balance.
Private Dining and Group Experiences
For travellers seeking deeper connection—whether with others or with themselves—Ylja offers space for reflection and celebration alike.
The restaurant seats 80 indoors, with additional outdoor seating overlooking the lagoon’s thermal waters. A separate private dining room, featuring artwork by Icelandic artist Sigmundur Freysteinsson, provides an intimate setting for milestone gatherings or corporate retreats.
Every detail, from the flicker of candlelight on the tables to the scent of herbs from the open kitchen, feels designed to ground you in the moment.
A Beautiful Way to See the Northern Lights
If there’s a single experience that captures Laugarás’ magic, it’s floating in steaming water under a canopy of stars, watching the aurora borealis unfurl across the sky.
The timing couldn’t be more perfect. Opening in sync with Northern Lights season (October–December and February–March), the lagoon’s evening hours allow guests to flow seamlessly from soothing geothermal baths into fine dining. The ultimate Nordic evening ritual.
A Destination That Redefines Wellness Travel
In Iceland, wellness has never been about luxury for its own sake. It’s about equilibrium—the meeting point between Earth’s raw energy and human presence. Laugarás Lagoon captures that perfectly.
Here, travellers can immerse themselves in geothermal waters powered by the planet, dine on food grown within walking distance, and witness one of nature’s greatest shows without leaving the warmth of the pool.
It’s not just a new stop on the Golden Circle. It’s a new kind of Icelandic pilgrimage—one that honours the country’s elemental traditions while pointing toward a more sustainable, sensory, and soulful future.
Your Turn
Laugarás is located on Iceland’s popular Golden Circle route, accessible via a scenic drive or hired tour from Reykjavík. The lagoon is open daily 10 am-10 pm, and Ylja Restaurant is open daily from 11 am-10:30 pm.
Book your experience at laugaraslagoon.is.