About 65 km. from Skaftafell and 80 km. from Höfn.
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The main lagoon measures about 7 square miles (20 km2) and until 1932 was covered in thick glacial ice. Then the glacier started to retreat, and nowadays more than 300 feet (100 m) of ice breaks away each year to reshape the lagoon and fill it with spectacular icebergs.

The lagoon is open to the sea and so contains a mixture of salt and freshwater, giving it a unique blue-green color. There are hundreds of seals here in the winter and the lagoon supports many species of fish including krill, herring, trout and, occasionally, salmon.