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. It is situated between a mountain range and the sea. The nearby mountain Kirkjufell forms a small peninsula.
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 no snow here. 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.