Budardalur is one of the few unique villages in Iceland that is by the sea, but without a large harbor. Budardalur is not a fishing village. It is a village in the West part of Iceland a 2.5-hour drive from Reykjavik and is the center of the Dalir area. Budardalur is by Breidafjordur Bay in Hvammsfjordur.
The economy of Budardalur is mainly agriculture and travel services. The area around Budardalur is one of Iceland’s most fertile areas with agriculture as the major industry.
Nearby Budardalur a museum dedicated to the time when Eirikur the Red lived at Eiriksstadir. There visitors can sit by a long fire typical of the old Iceland when the sagas were created. At Laugar in Saelingsdalur a district museum is located that is interesting to visit. Among the displays is the interior of an Icelandic turf house.