Grundarfjörður is a small town, situated in the north of the Snæfellsnes peninsula in the west of Iceland.
The town had 938 inhabitants in 2004 and 974 inhabitants in 2005. The town is situated in front of an impressive mountain range which has a slightly alpine look. On the sea side, there is a mountain called Kirkjufell, a diverted piece of the mountain strip Mýrarhyrna. The mountain forms a small peninsula.
The town received the right to do commerce in 1786. Around 1800, French merchants came to Iceland and lived in Grundarfjörður, where they constructed a church and a hospital of their own. The town has become rich through the fishing industry, and this wealth shows in the style of the original, luxurious houses being built.
The road to nearby Stykkishólmur crosses a big lava field, called Berserkjahraun. This is partially warm, so that even in winter, there is not snow everywhere. The name of the lava field comes from the Eyrbyggja saga, according to which two Berserkers were slain here by their master, because one of them fell in love with his master's daughter.