Laekjarbrekka
The black wooden house overlooking the junction of Bankastraeti and Laekargata was built by a rich Danish merchant as a bakery shop in the 1830s, and for many years it remained the only such shop in Reykjavik. Now fully restored, the restaurant still has that old time feel to it, and eating at Laekjarbrekka is like stepping back in time, sampling the best traditional food Iceland has to offer in authentic 19th-century surroundings. There is a cosy bar upstairs under the eaves which is perfect for pre- (or post-) dinner drinks, and the main dining room downstairs is just as comfortable and homely, with its collection of eclectic ornaments, embroidered tablecloths, lace curtains, Tiffany lamps and tapestries on the walls. The food, which is excellent, is traditional Icelandic fare ranging from lamb to lobster (the house speciality).

Laekjarbrekka Bankastraeti 2
Tel: 551 4430.
Website: www.laekjarbrekka.is 
Price: $$$$

Ó Restaurant
The stylish restaurant in the Óðinsvé Hotel has been taken over by Eythor Rúnarsson, a member of the Icelandic national team of chefs. Eythor has a passion for local, seasonal ingredients, which he combines with flair in modern dishes inspired by traditional European recipes. Try his leg of lamb with Icelandic cheese and mustard sauce for example, or his salted cod bacalao, served with sweet rutabaga and lime scented butter, for a taste of his exciting, unusual creations. Dinner only.

Hotel Óðinsvé, Thorsgata 1
Tel: 511 6677.
Website: www.orestaurant.is
Price: $$$$

Sjavarkjallarinn (Seafood Cellar)
The award-winning Seafood Cellar (thus named because it is located in the oldest cellar in Reykjavik) has gained recognition for its inventive and daring cooking on several occasions over the years, most recently in 2006, when chef Stein Oskar Sigurdsson won the prestigious Chef of the Year award. The main emphasis here is on fusion cooking, with fish and seafood, as one would expect, very much at the forefront of the menu (although lamb and vegetarian options are also available). The setting, with its stone walls, dimmed lights and white tablecloths, is original and inviting, and the service professional and unobtrusive. There is a solid wine list too if you want to splash out.

Aðalstræti 2
Tel: 511 1212.
Website: www.sjavarkjallarinn.is 
Price: $$$$

The Gallery Restaurant
Based in Hotel Holt, the Gallery Restaurant, named after the paintings that adorn the walls (the largest permanent private art collection in the country) is a perfect setting for a business meeting with a touch of class. Since it first opened in the 1960s, the restaurant has remained among the finest dining places in the capital, and indeed Iceland. The wine list, with over 4,000 bottles, features an impressive selection of vintage wines, Cognacs, malt whiskies and Armagnacs, and the food, traditional French with Icelandic touches, is superb.

Hotel Holt, Bergstathastaeti 37
Tel: 552 5700.
Website: www.holt.is 
Price: $$$$

The Pearl Restaurant
The Pearl is a favourite for business meetings. The restaurant, on the top floor of the Perlan building, is located on a revolving platform which allows guests to enjoy spectacular panoramic views with fine international cuisine. The Pearl truly comes into its own in the evening (it is in fact closed at lunchtime), when the sunset can be admired through the thousand glass panels of the dome, and later on when the lights all over it turn the interior into a star-studded night, regardless of the weather outside. The restaurant completes a full rotation every two hours.

Perlan, Oskjuhlith
Tel: 562 0200.
Website: www.perlan.is  
Price: $$$$

Vox
Located in the Hilton Reykjavik Nordica, the open-plan Vox Restaurant is a gourmet destination in its own right, and the perfect setting for a classy night out. The restaurant is popular with hotel guests and locals alike, but also increasingly with business people looking for a venue with a touch of sophistication for their meetings. The food is international, and combines Icelandic ingredients such as game, seafood and lamb with strong Mediterranean flavours, in dishes that embrace various continental trends.

Hilton Reykjavik Nordica, Suthurlandsbraut 2
Tel: 444 5050.
Website: www.voxrestaurant.com 
Price: $$$$

Café Paris 
With a prime location by Austurvollur Square, this popular venue is a prime spot for people-watching in summer. Open daily until 0100 (and 0400 at the weekend), Café Paris offers a range of sandwiches, cakes, soups, salads and pasta dishes, as well as a grill menu and a breakfast selection. The warm, relaxed atmosphere and the extensive bistro-style menu ensure the place is busy from early in the morning to late at night.  

Austurstræti 14
Tel: 551 1020.
Website: www.cafeparis.is
Price: $$

Café Solon
Maybe it's the music playing in the background, making the bright dining room such a chilled out place to hang out. Or the huge windows and the funky artwork on the walls. Maybe it's the friendly staff, who never seem too busy to attend to their customers. Whatever the answer, the recipe is a successful one, and Café Solon's customers (a mix of tourists and locals) keep coming back, some for the food alone (tasty, filling, and reasonably priced), others to also enjoy the upstairs bar and disco after hours.

Bankastraeti 7A
Tel: 562 3232.
Website: www.solon.is 
Price: $$

Fish Market
Reykjavik's coolest new eaterie is also one of the most exciting restaurants to have opened in the capital in recent years. Chef Hrefna Rosa Saetran might not be 30 yet, but she is no new comer (she worked at the much acclaimed Seafood Cellar for several years), and her stunning creations will both surprise and delight. Expect a mix of local ingredients and Asian influences, as with the Icelandic sushi for example, or the spotted catfish with wasabi. East meets west in the décor too (where basalt and bamboo make an exotic combination), and in true Japanese style there is a walk-in sushi bar and a robata grill too. Open for lunch and dinner.

Adalstraeti 12
Tel: 578 8877.
Website: www.fishmarket.is
Price: $$$$

A Naestu Grosum
Vegetarians can sometimes feel a bit left out in Reykjavik, as few eateries offer many meat-free options, but this restaurant, on the first floor of a wooden house right on the main shopping street, will certainly have them leave with a full stomach...and a smile on their face. Reykjavik's premier vegetarian restaurant offers a great selection of healthy dishes such as homemade salads, quiches and soups, pasta and rice dishes, all very reasonably priced. There are also yummy desserts to choose from, and take away is available. On Fridays and Saturdays, the emphasis is on Indian cuisine served with freshly baked Naan bread.

Laugavegur 20B
Tel: 552 8410.
Website: www.anaestugrosum.is 
Price: $$

Baejarins Beztu
Hot dogs (pylsur) are big in Iceland, as in many other Nordic countries, and Baejarins Beztu has become a real institution (even Bill Clinton visited when he was in town). Facing the harbour and overlooking a rather uninspiring parking lot, this tiny kiosk is famous throughout the city (and indeed further afield according to locals) for serving the original quintessential Icelandic hot dog; over a thousand a day are sold from the unassuming window. Do as the locals who flock here at any time of day or night for a quick bite to eat, and go for the Full Monty - a hot dog with mustard, ketchup and chopped raw and fried onions. It might not be glamorous, but it tastes delicious. 

Corner of Tryggvagata and Pósthússtræti
Price: $

Kina Husid
Centrally located on Laekjargata, this long-standing restaurant, housed in a little red building, offers some tasty, no-nonsense Chinese food in a comfortable setting. There are excellent value special discount lunch menus as well as an a la carte selection featuring house specialities, including Cantonese, Szechuan and Peking dishes.

Laekjargata 8
Tel: 551 1014.
Price: $$

Rauðara Steakhouse
Rauðara Steakhouse (the name means 'red river') occupies the premises of Reykjavik's first brewery, and the only one to remain open (allegedly to keep the army and the politicians of the day supplied in beer) after Iceland, well ahead of the USA, set the international prohibition bandwagon rolling by outlawing alcohol (prohibition was to last for over seven decades, and beer only legalised again in 1989). The restaurant has retained many of the original features, which bear witness to the history of the building. The setting is cosy and intimate, with dimmed lights and big candles, and the service friendly and relaxed. The main menu features typical Icelandic offerings varying with the season, with a strong emphasis on grilled meat and fish. There is also a more affordable international tourist menu for those with more conservative tastes...and/or those watching their budget.

Rauðararstigur 37
Tel: 562 6766.
Website: www.raudara.is  
Price: $$$$