Hafnarfjörður is a port town and municipality located on the southwest coast of Iceland, about 10 km (6 mi) south of Reykjavík.
It is the third-most populous city in Iceland, after Reykjavík and Kópavogur. Hafnarfjörður has established local industry and a variety of urban activities, with annual festival events.
The town is the site of an annual Viking festival, where Viking culture enthusiasts from around the world display reconstructions of Viking garb, handicraft, sword-fighting, etc.
Tourists with a New Age mindset enjoy a guided tour of the habitats of elves and other hidden people in the town area.
Hafnarfjörður is now arguably considered to be the rock n' roll capital of Iceland (a title that once belonged to Keflavík). Popular Icelandic bands such as Botnleðja, HAM, Sign, Lada Sport and Jakobínarína all trace their origins to the town of Hafnarfjörður.
Just two kilometers (1.2 miles) outside of Hafnarfjörður is an aluminium smelter, run by Alcan. Alcan has applied for an extension for the smelter, which will make it the fourth-largest smelter in Europe. The local governing body has sold Alcan land for the extension, Alcan has received permission for the extension from the government and a deal has been struck for selling energy to the smelter, even though the neighbouring area is the only place around Hafnarfjörður with available domestic building area for Hafnarfjörður.
The smelter was originally built in 1969, and it has improved its cleaning process since then, especially regarding fluoride. The effect that the extension would have on the environment and the local residents was, though, a huge concern for the people of Hafnarfjörður.
Local elections were held in May 2006, where the people of the town voted against extension of the smelter.
In the 1986 novel Red Storm Rising by Tom Clancy, the Soviet Union gains a dramatic strategic advantage at the beginning of the war by seizing Iceland with a Guards Airborne division transported secretly by converted freighters. When the US Marine Corps retake Iceland, they initially land at Hafnarfjörður before advancing on Keflavik. Additionally, in the novella, The Odd Saga of the American and a Curious Icelandic Flock, Snorri calls Alex in the middle of the night to tell him that he is passing through Hafnarfjörður and will be picking him up shortly for a trip to Snæfellsnes.