The village of Flateyri is in the fjord Onundarfjordur, about 25 kilometers from Isafjordur driving part of the way through a tunnel. Flateyri is a small fishing village and its history goes back to the 18th century and includes Norwegian whalers that started hunting for whales from Flateyri in the 19th century. The Norwegians built a factory, destroyed by fire a few years later just about the same time whaling stopped. Remains of the factory are still evident near the village.
Flateyri is located beneath high mountains and in 1995; a deadly avalanche struck the small village killing 20 of its inhabitants. After the avalanche, it was inevitable to build a gigantic avalanche protection to protect the village. Visitors can hike to a viewpoint on the avalanche protection for a view of the town and the fjord.
The fjord of Onundarfjordur is a spectacular place to visit for hiking, walking on a sandy beach, to kayak in the beautiful surroundings or just to stop the car and relax. A visit to the doll museum in Flateyri is a fun way to pass time and visitors can pick up some local handcraft during the visit.