Exploring Iceland's Winter Festivals with a Car Rental

Exploring Iceland's Winter Festivals with a Car Rental

Iceland winter festival with the northern lights above the crowed.

Visiting Iceland in winter is an unforgettable experience. It’s not only a time when the landscape is at its most beautiful, with snow-covered vistas and shimmering northern lights, but it’s also the perfect season to dive into Icelandic culture through its lively winter festivals.

What do you look for when visiting Iceland? Is it the stunning scenery or the unique culture? In winter, you can get the best of both. Iceland’s winter scenery is breathtaking, with northern lights illuminating the skies and waterfalls frozen in stunning cascades. But winter is also the season for some of the country’s most beloved and lively festivals.

Follow me as we uncover the best winter festivals in the land of ice and fire—and discover how you can enjoy them with your rental car in Iceland.

Just to be clear, there’s no official Northern Lights festival in Iceland. The auroras are a natural phenomenon and can be spotted throughout winter—it’s just a matter of luck. However, there are plenty of scheduled celebrations you can be a part of in Iceland during the colder months.

Downtown Reykjavik with Christmas lights.
Downtown Reykjavik around Christmas.

Christmas in Iceland

First and foremost, Christmas—known as Jól in Icelandic—is the biggest festival in Iceland. We start celebrating as early as November, and the festivities continue through mid-January. Here are a few unique and fun Christmas traditions in Iceland that you might find interesting.

J-Day and Christmas Beer

Iceland has a thriving beer culture, with its own Beer Day celebrated in March. Beer also plays a big role in Christmas celebrations. Each year, Icelandic breweries release hundreds of special Christmas beers, and the arrival of these brews is a widely celebrated event.

The first day of Christmas beer season, known as J-Day, is particularly special. On this day, Tuborg Julebryg—the original Christmas beer—becomes available on draft at bars across Iceland. There’s even a parade in downtown Reykjavik, where revelers move from bar to bar, ringing in the Christmas season and celebrating the first snow.

Christmas beers in Iceland on draft in a bar in Reykjavik.
Example of Christmas beers at a bar in Iceland.

Christmas Villages Weekends – Aðventan í jólaþorpinu

Starting in late November and continuing through Advent, Icelanders put up Christmas lights and embrace the holiday spirit. One of the best places to experience this is the Christmas Village in Hafnarfjörður, a town within the Reykjavik Capital area. During Advent weekends, the town center transforms into a magical Christmas Village, filled with small shops, twinkling lights, and live entertainment. This enchanting winter festival is a wonderful example of Iceland’s warm-hearted culture and holiday cheer.

Yule Lads – Jólasveinar

Iceland’s Yule Lads are a group of 13 mischievous Santa Clauses who descend from the mountains each December to bring gifts and entertain children. These singing bands of brothers are hugely popular and often make appearances at winter festivals throughout Iceland. You can’t visit Iceland in winter without encountering these beloved cultural figures.

8 Icelandic yule lads standing in front of a cabin in winter with northern lights.
8 of the 13 Yule Lads. 

Thorri Mid-Winter Festival

Christmas is certainly not the only winter celebration in Iceland. Another popular festival is Thorri (Þorri), named for the harshest winter month in the old Icelandic calendar. Thorri begins on Husband’s Day (January 26) and ends on Wife’s Day (February 25). During this time, Icelanders celebrate with Thorrablót—festivals that are among the biggest events of the year for each community.

At Thorrablót gatherings, locals feast on traditional Icelandic foods like sheep head, fermented shark, and other daring Icelandic delicacies, alongside dancing and plenty of Brennivín, Iceland’s signature liquor. If you want to experience something truly Icelandic, Thorri is as authentic as it gets.

A shot of Brennivín and a bites of fermented shark on a plate.
Brennivín and fermented shark - The ulitmate Thorri combo.

The Three-Day Winter Festival

In mid-February, Icelanders celebrate three unique days in a row: Bolludagur, Sprengidagur, and Öskudagur, creating a winter festival that spans from Monday to Wednesday.

  • Bolludagur (Bun Day): This day is dedicated to eating cream-filled buns. Tradition says that if someone smacks you on the bottom with a specially decorated wand, you owe them a bun!
  • Sprengidagur (Bursting Day): Similar to Mardi Gras, but instead of partying, Icelanders enjoy a hearty meal of salted lamb and bean soup.
  • Öskudagur (Ash Wednesday): Kids dress up in costumes and sing in local shops to receive candy, making it the Icelandic version of Halloween.

Winter Music Festivals in Iceland

Iceland also hosts fantastic music festivals in winter. The most famous is Iceland Airwaves, held in Reykjavik in November, where both international and Icelandic artists perform at venues across the capital. This festival highlights new music, making it a must-attend event for music lovers.

Another noteworthy festival is Aldrei fór ég suður (“I Never Went South”), held in Ísafjörður in Iceland’s Westfjords. For many, this festival marks the end of winter and the beginning of spring, bringing together local musicians and visitors in a celebration of resilience and creativity.

4x4 driving on a winter road in Iceland.

Winter Festivals with a Rental Car

Iceland’s winter festivals are celebrated all over the island, from Reykjavik to the Westfjords. To fully experience these events, having a rental car is essential. With a car, you can attend any festival that sparks your interest, exploring Iceland’s winter magic on your own schedule.

However, keep in mind that winter driving conditions can be challenging, even for experienced drivers. I recommend renting a 4x4 vehicle and opting for full insurance coverage to stay safe on the road. Be sure to monitor weather and road conditions daily to ensure a smooth journey.

Conclusion

Winter in Iceland offers the perfect blend of awe-inspiring natural beauty and vibrant cultural traditions. Whether you’re singing with Iceland’s Yule Lads, savoring the flavors of Christmas beer, or daring to try fermented shark at Thorri, each festival promises a truly unforgettable experience. All you need is a sense of adventure—and a reliable rental car—to explore Iceland’s winter wonderland on your own terms.

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