Best Bars in the World: Iceland Nightlife & Global Rankings

You might think Reykjavík is all geothermal pools and puffins—until you hit Laugavegur after midnight. The city runs a bar scene that locks in until 5 a.m., with happy hour discounts that can slash drink prices by nearly half.

Happy hour window: 16:00–18:00 (some venues extend later) ·
Draft beer (happy hour): from 1,050 ISK (Guide to Iceland nightlife guide) ·
Bar closing time (weekends): 4:00–5:00 AM (Guide to Iceland liquor guide) ·
Legal drinking age: 20 (Fylgja alcohol info)

Five key facts that frame the conversation around Reykjavík’s bar scene and its place in the global landscape:

Does Iceland have a good nightlife?

Yes – but not in the sprawling, multi-district way of London or New York. Reykjavík packs its nightlife into a walkable, safe core. The main drag Laugavegur, together with Bankastræti and Austurstræti, holds dozens of bars, clubs, and cocktail lounges within a 15-minute stroll (In Between Pictures nightlife guide).

Reykjavík nightlife overview

• Bars and clubs typically close between 4:00 and 5:00 AM on weekends (Guide to Iceland liquor guide).
• Happy hour is widely observed from 15:00 to 19:00, with discounts of 30–50% (Guide to Iceland happy hour guide).
• Some venues, like Center Hotels’ SKÝ Lounge, offer late happy hours from 20:00 to 23:00 (Sunday–Thursday) and until midnight on Friday–Saturday.
• The scene is safe for solo tourists, with a high density of bars on Laugavegur alone.

What makes Reykjavík a party town

Low crime, English-friendly staff, and the fact that bars stay packed long after mainland Europe has closed. The city’s compact size means bar-hopping rarely requires transport. A typical night starts with happy hour around 5 PM, moves to a cocktail bar by 9, and ends at a club like Pablo Discobar (Guide to Iceland nightlife guide).

The trade-off: you get intensity in a small radius. The city’s bar scene is not about variety of districts, but about depth – most venues are owner-operated, with distinct personalities.

What are the top 5 bars in the world?

The global benchmark is the World’s 50 Best Bars list, compiled annually by drinks industry editors. In 2024, the list crowned Bar Leone in Hong Kong as number one (World’s 50 Best Bars). No Reykjavík bar has entered the top 50 to date, though four local venues appear on the Discovery list: Jungle Cocktail Bar, Slippbarinn, Dill Restaurant, and Kol (Iceland Travel bars page).

Current global ranking: Bar Leone (Hong Kong) #1

• Bar Leone, Hong Kong – #1 (World’s 50 Best Bars)
• Handshake Speakeasy, Mexico City – #2
• Maybe Sammy, Sydney – #3
• BKK Social Club, Bangkok – #4
• La Granja, Medellín – #5

How Reykjavík bars compare

Reykjavík’s cocktail culture is still maturing. While the creative output at Jungle Cocktail Bar and Slippbarinn earns local praise, global judges have yet to rank them among the elite. The gap is partly one of brand – top-50 bars often belong to international bartender networks and ingredient supply chains that Reykjavík’s small scene is only beginning to develop.

The pattern: small scenes can break through when they leverage local ingredients as differentiators.

Why is there a Big Lebowski bar in Iceland?

The Lebowski Bar on Laugavegur is one of the city’s most recognizable venues. It draws its theme from the 1998 Coen brothers film The Big Lebowski, offering White Russians, movie memorabilia, and a laid-back, retro atmosphere (Wake Up Reykjavik bar guide). Theming taps into Icelanders’ love of irony and cult cinema. The bar thrives on : it punches above its weight precisely because it leans hard into obsession rather than generic coolness.

Happy hour window: 16:00–18:00 (some venues extend later) ·
Draft beer (happy hour): from 1,050 ISK (Guide to Iceland nightlife guide) ·
Bar closing time (weekends): 4:00–5:00 AM (Guide to Iceland liquor guide) ·
Legal drinking age: 20 (Fylgja alcohol info)

Five key facts that frame the conversation around Reykjavík’s bar scene and its place in the global landscape:

Does Iceland have a good nightlife?

Yes – but not in the sprawling, multi-district way of London or New York. Reykjavík packs its nightlife into a walkable, safe core. The main drag Laugavegur, together with Bankastræti and Austurstræti, holds dozens of bars, clubs, and cocktail lounges within a 15-minute stroll (In Between Pictures nightlife guide).

Reykjavík nightlife overview

• Bars and clubs typically close between 4:00 and 5:00 AM on weekends (Guide to Iceland liquor guide).
• Happy hour is widely observed from 15:00 to 19:00, with discounts of 30–50% (Guide to Iceland happy hour guide).
• Some venues, like Center Hotels’ SKÝ Lounge, offer late happy hours from 20:00 to 23:00 (Sunday–Thursday) and until midnight on Friday–Saturday.
• The scene is safe for solo tourists, with a high density of bars on Laugavegur alone.

What makes Reykjavík a party town

Low crime, English-friendly staff, and the fact that bars stay packed long after mainland Europe has closed. The city’s compact size means bar-hopping rarely requires transport. A typical night starts with happy hour around 5 PM, moves to a cocktail bar by 9, and ends at a club like Pablo Discobar (Guide to Iceland nightlife guide).

The trade-off: you get intensity in a small radius. The city’s bar scene is not about variety of districts, but about depth – most venues are owner-operated, with distinct personalities.

What are the top 5 bars in the world?

The global benchmark is the World’s 50 Best Bars list, compiled annually by drinks industry editors. In 2024, the list crowned Bar Leone in Hong Kong as number one (World’s 50 Best Bars). No Reykjavík bar has entered the top 50 to date, though four local venues appear on the Discovery list: Jungle Cocktail Bar, Slippbarinn, Dill Restaurant, and Kol (Iceland Travel bars page).

Current global ranking: Bar Leone (Hong Kong) #1

• Bar Leone, Hong Kong – #1 (World’s 50 Best Bars)
• Handshake Speakeasy, Mexico City – #2
• Maybe Sammy, Sydney – #3
• BKK Social Club, Bangkok – #4
• La Granja, Medellín – #5

How Reykjavík bars compare

Reykjavík’s cocktail culture is still maturing. While the creative output at Jungle Cocktail Bar and Slippbarinn earns local praise, global judges have yet to rank them among the elite. The gap is partly one of brand – top-50 bars often belong to international bartender networks and ingredient supply chains that Reykjavík’s small scene is only beginning to develop.

The pattern: small scenes can break through when they leverage local ingredients as differentiators.

Why is there a Big Lebowski bar in Iceland?

The Lebowski Bar on Laugavegur is one of the city’s most recognizable venues. It draws its theme from the 1998 Coen brothers film The Big Lebowski, offering White Russians, movie memorabilia, and a laid-back, retro atmosphere (Wake Up Reykjavik bar guide). Theming taps into Icelanders’ love of irony and cult cinema.

Origin and theme of Lebowski Bar

• Named after the film’s protagonist, Jeffrey “The Dude” Lebowski.
• Located in downtown Reykjavík on Laugavegur, a main shopping and nightlife street.
• Offers a dedicated menu of White Russian variations, plus bowling alley decor.

What to expect when visiting

The bar is a tourist magnet, especially for film fans. It stays open until 1 AM on weeknights and 3 AM on weekends. The crowd is mixed – locals come for the affordable happy hour (16:00–18:00), while tourists fill the later hours. Non-drinkers can order soft drinks and mocktails.

Which is the best rooftop bar in Reykjavík?

Reykjavík’s rooftop scene is small but growing. The three most cited venues are SKÝ Lounge & Bar, Petersen Svítan, and The Roof at Edition Hotel. Each offers harbor or mountain views, but they vary in opening days and seasonality (Iceland Travel bars page).

Top rooftop bars ranked

• SKÝ Lounge & Bar (Center Hotels) – daily happy hour 16:00–18:00, late happy hour Sun–Thu 20:00–23:00, Fri–Sat until midnight. Harbor views.
• Petersen Svítan – atop the historic Gamla Bíó building; central location, open daily.
• The Roof at Edition Hotel – panoramic views over Reykjavík bay, but open only Thursday–Saturday (Iceland Travel).

Sky Lagoon’s new rooftop bar

Sky Lagoon’s rooftop bar is a recent addition, but operates seasonally (summer only). Its infinity-edge design overlooks the Atlantic, making it more of a daytime-to-sunset experience than a late-night party spot.

The catch: “best” depends on timing. For a golden-hour drink with a view, SKÝ Lounge is the safest bet because it opens daily. For exclusivity and high design, The Roof wins – but only on its four open nights per week.

Which country has the best bars in the world?

Looking at the 2024 World’s 50 Best Bars list, Hong Kong leads with the #1 spot, followed by established cocktail capitals. The table below shows the top-ranked countries by number of bars in the top 50 and their signature styles.

Five countries dominate the global bar conversation, revealing a clear pattern of where innovation is concentrated.

Iceland does not appear in the 2024 top 50. Its absence reflects the country’s small population (under 400,000), limited international bartender exchange, and a nightlife economy that prioritizes volume over sophistication in most venues. That said, the cocktail bars that do exist – Jungle, Slippbarinn, Kol – are consistently praised for quality within Iceland’s borders (Iceland Travel bars page).

The implication: Iceland’s global bar ranking is low, but that reflects structural factors rather than a lack of talent.

What are the best cocktail bars in Reykjavík?

The city’s cocktail scene is compact but creative. Five venues consistently appear in guides and local recommendations.

Jungle Cocktail Bar

• Tiki-themed, known for rum-based cocktails and tropical flair (Iceland Travel bars page).
• Located on Laugavegur, open until 1 AM weeknights, later on weekends.

Kokteil Barinn

• Wide cocktail menu with local ingredients (rhubarb, birch, skyr).
• Casual atmosphere, frequent happy hour (16:00–18:00).

Kol

• Upscale bar and restaurant, part of the 50 Best Discovery list.
• Known for meticulous classic cocktails and a food pairing menu.

Röntgen Bar

• Speakeasy-style, hidden entrance, dim lighting.
• Focus on vintage spirits and original recipes.

Slippbarinn

• Marina view at the Icelandair Hotel Reykjavík Marina.
• Listed on 50 Best Discovery; known for seafood-friendly cocktails.

Is beer still illegal in Iceland?

No – beer has been fully legal since March 1, 1989 (Fun Iceland travel guide). Before that date, Iceland had a partial prohibition that allowed wine and spirits but banned beer with an alcohol content above 2.25%. The ban was a post-independence holdover rooted in temperance politics.

History of beer prohibition in Iceland

• Prohibition on beer (over 2.25% ABV) began in 1915 as part of a national referendum.
• Wine and spirits were legalized later, but beer remained banned until 1989.
• March 1 is now celebrated as “Beer Day” in Iceland.

Current alcohol laws

• Beer, wine, and spirits are sold in bars, restaurants, and state-run Vínbúðin stores (Fun Iceland travel guide).
• Grocery stores sell only low-alcohol beer (≤2.25% ABV).
• Drinking age is 20 (Fylgja alcohol info).
• Beer is the most popular alcoholic drink in bars, with Icelandic microbreweries growing quickly.

What this means: you can order any beer style at any Reykjavík bar without legal worry. The only restriction is which store sells it – for takeaway, head to Vínbúðin (open limited hours, closed Sundays).

Related reading: What Are the Northern Lights? · Where to Travel in Summer

For a deeper dive into the city’s top spots, check out this comprehensive Reykjavik nightlife guide that covers prices and tipping.

Frequently asked questions

For travelers heading to Reykjavík, the choice between chasing global rankings and experiencing the local scene is clear: if you want a bar that’s been crowned by the world’s top editors, book a flight to Hong Kong. But if you want late-night walks between a tiki jungle, a Lebowski shrine, and a rooftop overlooking the harbor – all within ten minutes – Reykjavík delivers something no list can capture. Also read: What Are the Northern Lights?