The Hallormsstadur forest is the largest in the country. In 1899 the parliament passed a law for the protection of the remaining forest and the reforestation of the area. A century later the forested area has increased tremendously in size and has an area of about 2300 hectares. Hallormsstađur is located on a 35 km long glacial lake and down by a small cove, Atlavik, are good camping grounds, where families gather during weekends and holidays and all kinds of festivities are celebrated during summer. One of the celebrities, who appeared there late last century was one of the Beatles, Ringo Starr. The arboretum of the forest is well worth visiting. Visitors, who are accommodated in the hotels on the spot can enjoy leisurely walks in the woods or rent horses for short tours. At a nearby farm, Eyjolfsstadir, a guesthouse also accommodates visitors. The distance from the capital is 726 km and 28 km from Egilsstadir.

Unlikely as it may sound Iceland has a forestry commission, and Hallormstađur is its platform. Situated on the eastern shore of Lake Lögurinn the Hallormstađur forest has over 40 species of trees from different parts of the world. The forest is the largest woodland plantation in Iceland. The visitor can stroll down one of the marked walking paths, stop by at the Tree Museum or check out Iceland?s oldest tree. The tree was planted in 1938, at Guttormslundur, 2,5 km north of Fosshotel Hallormsstađur and has today reached the height of roughly 15 m. At the Atlavík cove travelers can hire pedal boats, rowboats or canoes or arrange horse riding tours near Fosshotel Hallormsstađur. The forest and the lake surroundings are perfect for hiking and in late summer for berry and mushroom picking. Hiking maps are available at the hotel.