by Chris Ayliffe, Arctic Meta
If you think Iceland is only about volcanoes, glaciers, and waterfalls, think again.
There’s an unseen world hiding in the lava fields, moss-covered boulders, and misty valleys.
A world of elves and hidden people, known as huldufólk.
Whispers of their presence are woven into the fabric of Icelandic culture.
In this guide, we invite you to journey through Iceland’s magical folklore, discover sacred places, and maybe even encounter the hidden folk yourself.
Let’s explore this spellbinding side of Iceland — one that blends myth with mystery.
Who Are the Hidden People and Elves of Iceland?
In Iceland, elves („álfar“) and hidden people („huldufólk“) are central figures in the country’s folklore and spiritual imagination.
They are often considered similar but not identical beings.
Both are thought to live in a parallel dimension (but, remember, I’m not Professor Brian Cox) that overlaps with our own, hidden from ordinary sight unless they choose to reveal themselves.
Huldufólk are described as human-like in size and appearance, often dressed in elegant, old-fashioned clothes reminiscent of another era.
They are said to be extraordinarily beautiful, wise, and secretive, preferring to avoid human interaction unless necessary.
Their homes are believed to be in natural formations like rocks, cliffs, lava fields, and grassy knolls — places that stand out in the Icelandic landscape and feel charged with a certain presence.
The term „huldufólk“ literally means „hidden people,“ and it reflects a belief that they exist in harmony with nature, unseen but not far away.
Álfar, meanwhile, are sometimes seen as a broader category that may include beings more aligned with Norse mythology, such as light elves and dark elves, which were once believed to reside in different realms of the old Norse cosmology (watching the Thor Marvel films will give you a head start here…sorta).
Over time, the two ideas have blended together in Icelandic folklore, influenced by pagan traditions, Christian reinterpretations, and centuries of fireside storytelling (or as Gen Z calls it – TikTok).
What distinguishes these tales is that they are not merely legends from the distant past — they continue to shape how many Icelanders relate to their environment.
From the moss-covered boulders of the countryside to the planning of modern roads, the belief in elves and hidden people is a living tradition, woven into the daily consciousness of the nation.
Do Icelanders Really Believe in Elves?
It might surprise visitors, but belief in elves and hidden people remains genuinely widespread among Icelanders.
This belief isn’t confined to fairy tales or childhood stories — it is often expressed as a quiet, cultural respect for things that science doesn’t fully explain.
While few people claim to have seen elves directly, many acknowledge that something unusual seems to linger in Iceland’s untouched landscapes.
In fact, national surveys conducted over the years have consistently revealed that around half of the population won’t rule out the existence of huldufólk.
Some estimates show that roughly 7 to 10% of Icelanders firmly believe in them, while many more keep an open mind.
In Iceland, not believing doesn’t necessarily mean disrespecting.
This is why you’ll hear locals say, „I’ve never seen them, but that doesn’t mean they’re not there.“
There’s a cultural tendency to honour the old ways, to maintain harmony with nature, and to avoid disturbing places long associated with mystical energy.
Ask around in small towns or remote areas, and you’ll find people sharing personal anecdotes — from strange dreams to lost time, to moments of guidance that they couldn’t quite explain.
Farmers might tell you about livestock that refused to cross a certain field until it was blessed, or how their grandparents always left offerings at a particular stone on Christmas Eve.
Even in modern Reykjavik, professionals like engineers and road planners have been known to consult mediums or alter building plans to avoid „elf dwellings.“
You’ll find that even sceptics pause before disturbing certain rocks — not out of fear, but out of respect for tradition and the possibility that some things are best left undisturbed.
It’s this balance between folklore and modernity that gives Iceland its unique charm and spiritual depth.
Where the Elves Live: Sacred Rocks, Hills, and Homes
Elves in Iceland are believed to reside in specific, often dramatic, natural features that are said to pulse with unseen energy.
Lava fields, shaped by ancient eruptions and cloaked in thick moss, are among the most common places associated with elf dwellings.
Large, oddly-shaped stones, cliffs, and even grassy knolls in remote valleys can all serve as homes for the huldufólk.
These natural features are not just geological landmarks — they are imbued with cultural meaning and spiritual significance.
Some stones are known locally by name and have stories attached to them, passed down through generations.
In many cases, these rocks are considered so sacred that it is taboo to touch, move, or disturb them in any way.
It is not uncommon for construction projects — from roads to housing developments — to be halted or diverted when they encounter what is believed to be an „elf rock.“
In fact, Icelandic media has reported numerous cases where locals protested or petitioned to protect such stones from being disturbed.
Government authorities and construction firms have been known to call in „elf communicators“ or mediums to consult with the hidden people and ensure that any development proceeds respectfully.
You may even see signs on walking paths or near hillsides warning people not to tread in certain areas due to folklore associations.
In some areas, barriers have been erected not for wildlife or environmental protection — but specifically to safeguard known elf homes.
Many Icelanders have personal connections to these places.
It’s not unusual to hear someone say, „There’s a rock near the farm where I grew up, and we always believed elves lived there.“
These sites are often avoided during certain times of day or in bad weather, which is believed to be when the huldufólk are most active.
They’re approached with reverence, not fear — much like you might approach a church or a graveyard.
To visit such places with curiosity and quiet respect is to participate in one of Iceland’s oldest living traditions.
Real-Life Consequences: When Elves Stop Construction
There have been numerous documented incidents where belief in elves and hidden people has tangibly affected Icelandic construction and infrastructure projects.
Perhaps the most well-known example occurred in 2013 during a highway expansion near the lava field of Gálgahraun, close to Álftanes and Hafnarfjörður.
At the centre of the dispute was Álfhóll — translated as „Elf Hill“ — a lava outcrop long believed by locals to be a sacred dwelling of the huldufólk.
When the project threatened to destroy this site, it sparked public outcry, legal action, and widespread media coverage.
Activists, environmentalists, and elf believers joined forces, staging protests and urging authorities to reconsider the route – imagine rocking up to that protest!
What’s remarkable is not just the scale of the protest, but the way it was taken seriously by both the public and legal system.
The Icelandic Supreme Court temporarily halted the project, giving space for negotiations.
Eventually, the rock was carefully moved and placed nearby with traditional ceremonies, overseen by a specialist in elf communication — a respectful gesture to ensure peace with the hidden world.
This wasn’t an isolated case.
Over the years, several projects have encountered mysterious setbacks when working near suspected elf dwellings.
Machinery inexplicably breaking down, delays caused by bad weather only over one site, and sudden illnesses among workers have all been cited as potential „signs“ of displeasure from the hidden people.
Contractors have sometimes brought in seers or mediums to communicate with the elves and ask for permission to proceed or perform rituals to appease them.
In some cases, construction was rerouted entirely — not due to engineering constraints, but out of cultural and spiritual caution.
One construction firm, well-known in Iceland, even included elf-related risk assessment in its planning documents.
While sceptics may dismiss these tales as superstition or coincidence, the societal impact is real.
The stories reflect a uniquely Icelandic approach — one that blends pragmatism with tradition, and science with myth.
It shows how deeply the respect for the unseen is embedded in the national psyche.
To this day, belief in the huldufólk continues to influence planning decisions, serve as a voice for environmental preservation, and connect modern Icelanders to their ancestral roots.
Meet the Hidden People: Unique Personalities and Powers
Not all elves and hidden people in Iceland are alike — in fact, they are as diverse and nuanced as humans themselves.
Some are known to be mischievous tricksters, playing harmless pranks or confusing travellers with illusions and strange sounds in the wilderness.
These tales often serve as cautionary folklore, reminding people not to stray from the path or disrespect nature.
Others are described as benevolent, offering guidance and assistance to those who are lost, injured, or in need of help.
There are heartwarming stories of children who spoke of unseen friends, later confirmed by mediums to be protective elf companions.
Farmers have long told of receiving advice in dreams from hidden people about when to plant crops or how to care for sick animals — wisdom said to result in remarkable success.
In some accounts, huldufólk appear as guardians of the land, healing the injured, protecting natural springs, or aiding midwives and mothers in childbirth.
They are often said to reward kindness, humility, and respect with blessings — from unexpected good fortune to dreams filled with guidance and insight.
However, they can also be fiercely protective and retaliate against those who act out of greed or ignorance.
People who damage or disturb their homes — such as by cutting into sacred rocks or building on elf-occupied land — may face a streak of misfortunes until they apologise and make amends.
These consequences are not framed as curses in the traditional sense, but as warnings to maintain harmony with the natural world and its unseen inhabitants.
Some hidden people are said to fall in love with humans, though these relationships are often bittersweet — ending when the human breaks a promise or leaves their magical partner for a mortal life.
A recurring theme across all these stories is the elf or huldufólk’s strong desire to remain unseen and undisturbed.
They live quietly, often just out of sight, surfacing only when absolutely necessary — always watching, always guarding.
Their presence is tied to places where the land feels old and powerful — mossy lava fields, hills that hum in the wind, or solitary boulders that seem to shimmer at dusk.
Ultimately, what they all share is not only a deep connection to nature, but also a reminder to respect what we do not understand — a core value that continues to shape Icelandic identity and storytelling today.
How to See the Elves: Guided Tours and Elf School
If you’re curious to learn more about Iceland’s rich elf and hidden people folklore, there are several ways to experience it firsthand — and they go far beyond reading storybooks.
Start your journey in Reykjavík, where local walking tours dive into the capital’s hidden folklore hotspots.
These tours are led by guides steeped in storytelling tradition, often blending humour, myth, and personal anecdotes passed down through generations.
They take you to places such as mossy parks, peculiar rock formations, and elf-believed homes nestled in quiet urban pockets.
Just 15 minutes from Reykjavík lies Hafnarfjörður, a picturesque harbour town widely considered one of Iceland’s most enchanted areas.
Hafnarfjörður is built on ancient lava fields and is said to be home to multiple elf clans living peacefully alongside humans.
The town embraces this identity wholeheartedly — with marked elf sites, informative signage, and guided tours that highlight the hidden people’s lore as a local legacy.
Visitors often remark on the eerie calmness and „otherworldly“ feeling of these spaces, especially around Hellisgerði Park, known as one of the most active elf zones.
For those who want a more structured and in-depth approach, the Icelandic Elf School (Álfaskólinn) in Reykjavík offers an unforgettable experience.
This privately-run school combines elements of folklore, ethnology, and cultural study to explore not just Icelandic elves but other nature beings believed to exist in global traditions.
The founder, Magnús Skarphéðinsson, has spent decades collecting thousands of stories from Icelanders who claim to have encountered elves, gnomes, dwarves, and other hidden folk.
The Elf School offers half-day classes that include lectures, a diploma, and refreshments — all presented with a charming blend of sincerity and playful eccentricity – sadly none of these are delivered by Will Ferell.
You’ll also receive printed materials summarising different types of hidden beings, common traits, and where they are said to live.
Whether you’re a sceptic or a believer, these experiences offer unique insight into how seriously Icelanders take their folklore — and how it continues to influence the way they interact with the landscape around them.
It’s part magical, part educational, and wholly Icelandic.
Hidden People in Modern Icelandic Culture
Elves are far from forgotten in today’s Iceland — in fact, they remain one of the most enduring and recognisable symbols of Icelandic culture and spirituality.
Their presence continues to resonate across both urban and rural landscapes, weaving together the old and the new in subtle yet meaningful ways.
You’ll find references to the huldufólk everywhere: in colourful murals on city walls, in sculpture gardens, in theatre performances, and at local festivals celebrating midsummer, Yule, or Icelandic heritage.
Some communities hold specific folklore nights or elf-themed parades where locals don traditional garb and retell stories around bonfires.
Their imagery graces everything from postage stamps to tourism brochures, while their tales are shared in schools, kindergartens, and even university courses on Icelandic identity and literature.
In souvenir shops, elf figurines and handcrafted items are not just kitsch — they’re cultural touchstones.
You’ll also find entire books and illustrated maps dedicated to their habitats, as well as storytelling stations at museums and visitor centres.
But beneath the whimsy lies something deeper and more profound.
The elf tradition is not merely entertainment — it’s a symbolic framework through which Icelanders express their relationship to the natural world and to the mysteries that still lie beyond human understanding.
In this way, huldufólk continue to shape environmental awareness, reminding people to protect sacred lands and approach development with thoughtfulness – think of it as a quirky way to embrace the importance of respecting nature…so we can avoid any ‘Day After Tomorrow’ type events any time soon.
Even public infrastructure projects occasionally consult local lore to avoid disturbing elf sites, as part of a broader commitment to cultural respect and ecological harmony.
In many ways, elves embody the Icelandic values of balance, humility, and reverence — values that have allowed the island nation to remain uniquely attuned to its ancient roots, even in the modern era.
They are as much a part of Iceland as the Northern Lights, the sagas, or the geothermal springs that bubble beneath its surface — living reminders that myth, culture, and land are inseparably intertwined.
Some of the Most Famous Huldufólk Folklore in Iceland
The Midwife’s Gift: A Tale of Eternal Sight
One of Iceland’s most cherished folktales tells the story of a human woman who assisted a hidden person during childbirth.
Late one night, she was approached by a mysterious stranger asking for help.
Though hesitant, she agreed and was blindfolded before being led through unfamiliar terrain.
She delivered a healthy baby to a woman who, though ethereal in appearance, appeared grateful and serene.
When her task was complete, the stranger thanked her and told her she would now be able to see things others could not.
From that day forward, the woman could perceive the huldufólk — in fields, by rivers, even shopping in the markets — living parallel lives just beyond ordinary vision.
She never feared them, and many sought her out for guidance.
This story is often told as a lesson in kindness and how small acts of compassion can reveal entire worlds.
The Man Who Disturbed the Sacred Rock
In another widely shared tale, a man once decided to cut into a large, moss-covered rock near his farm.
Unconcerned with local warnings that the stone was a dwelling place for the hidden people, he took his tools and began to split it.
Soon after, strange things began to happen.
His sheep went missing, machinery failed without explanation, and his health began to decline.
Dreams tormented him at night — always of shadowy figures standing by the rock, silent and watchful.
An elderly neighbour advised him to return to the stone, apologise, and leave an offering of bread and milk.
He did so.
Not long after, the misfortunes ceased.
This story, passed down through families, serves as a reminder that disruption of nature and disregard for the unseen can bring consequences.
Elf Weddings and Midnight Moves
There are also stories of entire communities of elves holding elaborate ceremonies in the hills.
Some farmers speak of hearing distant music and laughter coming from the rocks late at night, or finding mysterious footprints in the morning frost.
These elf weddings are described as grand affairs, with glowing lights, flowing garments, and unearthly beauty.
In some accounts, elves move house entirely in the dead of night — packing up their dwellings in a matter of minutes and resettling elsewhere.
It’s said that if you witness such a moment, you’ll never forget it — but you must never speak of it, or you may forget the event altogether, as if it were a dream.
Local Legends Rooted in Place
These tales are not just isolated folklore.
They are tied to specific stones, valleys, and farms, where the memory of these events lives on.
Ask around and you’ll likely hear a local version of the same tale, anchored to a nearby hill or pasture.
They offer more than just entertainment — they shape the way people engage with their surroundings.
They are living stories, still whispered among families and respected by generations.
Ultimately, these accounts provide a powerful glimpse into how Icelandic mythology is not a thing of the past, but a deeply embedded part of everyday life.
Will You Bump Into a Hidden Person at the Panorama Glass Lodge?
Absolutely — especially if you’re spending your evening stargazing from the warmth of your glass-walled cabin.
At Panorama Glass Lodge, you’re immersed in the kind of pristine wilderness where legends live and breathe.
From the whispering wind in the nearby birch trees to the silence broken only by the crunch of snow or call of a distant bird, this is the Icelandic landscape that stories of the huldufólk come from.
Whether or not you believe in hidden people, the serenity and atmosphere of the place may have you wondering.
After all, there’s something about the air at Panorama Glass Lodge — still, hushed, and alive — that makes you pause.
And while you might not catch sight of a huldufólk, you may just sense their quiet presence all around you.
Conclusion: Keep Your Eyes Open in Iceland
Whether you’re a firm believer or simply folklore-curious, there’s no denying that Iceland’s hidden people (the huldufólk) are more than just myth or old wives’ tales.
They encapsulate something ancient, profound, and emotionally resonant.
They represent a sacred bond between people and place — a deep-rooted connection to the land, the seasons, and the spirit of the wild.
They embody the idea that we are not alone in the world, that forces beyond our comprehension may dwell in the very stones and hills we pass without a second glance.
They are a testament to a worldview that values silence, subtlety, and spiritual coexistence with the natural world.
To respect the hidden people is to acknowledge that not everything needs to be seen to be believed.
It’s about honouring the mystery.
It’s about understanding that magic can still exist – not just in folklore, but in the way we walk through the world.
So next time you find yourself hiking a moss-draped path, pausing at a solitary boulder, or watching the Northern Lights dance across the sky from your warm bed at Panorama Glass Lodge, take a moment.
Breathe in the stillness. Let your senses sharpen. Listen for the whispers in the wind, the echo in the stone.
Look again – not with your eyes, but with your imagination.
Because in Iceland, the land is alive.
And you never know who might be watching (just to confirm, all of our lodges are fully private!) — or quietly watching over you.