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. As the third largest city, Hafnarfjörður has established local industry and a variety of urban activities, with annual festival events.
Hafnarfjörður takes its name (meaning harbour fjord) from the area's excellent natural harbour. The town is first named in the medieval Landnámabók, and the earliest reports of voyages to Hafnarfjörður date from the end of the 14th century. Englishmen began trading in Hafnarfjörður in the 15th century, but German merchants followed in their wake and eventually drove the English out. The first Lutheran church in Iceland was raised at Háigrandi, opposite Óseyri, just outside the small boat harbour in 1533. After that, the Hanseatic traders prevailed in town until 1602, based at Hvaleyri. At this point, the Danish monarchy established a Danish trade monopoly in Iceland which lasted until late in the 18th century. During this period, Hafnarfjörður was the nation's busiest trade centre.