Reykjavík serves as the capital and largest city of Iceland, situated on the southern shore of Faxaflói bay in the southwest region. It holds the distinction of being the world's northernmost capital of a sovereign state, located at latitude 64°08′ N. The city is primarily located on the Seltjarnarnes peninsula, with suburbs extending south and east across a landscape shaped by peninsulas, coves, and straits. As the administrative heart of the nation, it anchors the Capital Region, which constitutes approximately 64% of Iceland's total population.

Settlement began in Reykjavík when Ingólfur Arnarson arrived from Norway in 874, establishing the first permanent Norse settlement according to the Landnámabók. For over 900 years, the area remained largely undeveloped farmland before King Frederik V of Denmark donated the estate to the Innréttingar corporation in 1752. The city was officially founded in 1786 as a trading town with an exclusive charter, growing steadily from a wool industry hub into the centre of Iceland's cultural and governmental activity after the Alþingi was re-established there in 1845.

The urban area is characterized by low-density suburbs with widely spaced houses and main traffic arteries, contrasting with the small, colourful city centre. Notable geographical features include Mount Esja, the highest mountain in the vicinity at 914 m, and the Elliðaá River, which offers salmon fishing within city limits. The landscape bears marks of the Ice Age, with hills like Öskjuhlíð remaining from former shield volcanoes. The city centre is known for its eclectic architecture, good shopping, and dining options, serving as a focal point for tourism.

Reykjavík is consistently ranked as one of the cleanest, safest, and most environmentally friendly cities in the world, attracting visitors with its vibrant culture and history. It hosted the famous 1972 World Chess Championship between Bobby Fischer and Boris Spassky, and the 1986 Summit between Ronald Reagan and Mikhail Gorbachev underlined its international status. The city is a hub for Icelandic life, with significant financial and IT sectors driving modern employment alongside traditional industries like fishing and tourism.

The population of Reykjavík is 138,772 as of 2025, while the surrounding Capital Region has around 252,000 residents. The economy has transformed from fishing and wool to finance and technology, with the financial sector and computer revolution of the 1990s playing key roles. Transport access includes Reykjavík Airport for short-haul flights and Keflavík Airport, built by Americans during World War II, located 50 km west. Despite its high latitude, winters are surprisingly mild, making it accessible year-round.