First settled by Vikings in 874, Reykjavik is the world's most northerly capital cities and one of the smallest, making it easy to explore on foot. Framed by the majestic Mount Esja and Faxafloi Bay, the city enjoys a wonderful natural setting. Close to Reykjavik are the famous thermal waters of the Blue Lagoon, the impressive Hallgrimskirkja church and opportunities to go whale watching.