Skógar

A small Icelandic village with a population of roughly 25 (Did I mention it's small?)
The area is known for its waterfall, Skógafoss, on the Skógá river, which springs from 60 metres at the top of an eroded cliff. At Skógar is a very nice folk museum, Skógasafn, open daily, all the year, as well as a museum on transport in Iceland.

Skógar was highly affected by the eruption of the Eyjafjalla volcano in 2010.