This Dreamy Icelandic Lagoon Comes With Its Own Scenic Waterfall, A Swim-Up Bar, And Ethereal Views

Iceland is known for its iconic waterfalls and hot springs, from Gullfoss Falls to the Blue Lagoon. But now there's a new attraction that's drawing attention. In August 2025, a gorgeous wellness retreat called Laugarás Lagoon is opening on the Golden Circle, a famous sightseeing route and one of the can't-miss destinations in Iceland, according to travelers. 

Laugarás Lagoon is set on the banks of the Hvitá River in the south of Iceland. The two-story, infinity-edge lagoon is over 10,000 square feet and features a nearly 22-foot-long waterfall that connects the two pools. From the pools, guests will be surrounded by sweeping volcanic landscapes, thick forests, and untouched nature. It's a quiet place to relax and unwind, unlike some of the country's busier, more commercial thermal spas.

The wellness center is much larger than it may appear at first sight and is divided into two sprawling levels. To help guests move between the upper and lower lagoons, a staircase has been cleverly designed into the water features and travels through the cascading waterfall. As the lagoon is geothermal, the water temperature hovers at a simmering 100 degrees Fahrenheit.

Beyond the lagoon, you'll find a pool and two serene saunas set in the forest — one dry heat, one steam. Next to the sauna area is a cold plunge pool, fed by glacial water from the Hvítá River. It's recommended to rotate between the hot and cold pools to help with circulation. For more privacy, check out the secluded grotto on the left side of the lower lagoon.

With all the heat, you may be in the mood for a refreshing drink. Luckily, there are two swim-up bars, so you don't even need to get out of the lagoon for a cocktail or craft beer. When hunger strikes, head to the on-site restaurant to try the farm-to-table dishes, including arctic char, slow-cooked cod, and leg of lamb with Icelandic sheep cheese, grilled over an open fire.

To get to Laugarás Lagoon, you'll need to drive roughly 90 minutes from Reykjavík or close to two hours from from Keflavík International Airport (KEF). The resort is open year-round, with different hours during the summer and winter seasons. Between June and September, the opening hours are 10 a.m. to 10 p.m., and 10 a.m. to 9 p.m from October to May. While the northern lights are stunning in the colder months, experts like Rick Steves say that summer is actually the best time to visit Iceland.

To book a timeslot, you'll have to choose between three packages, ranging from roughly $56 to $130 per person. The standard package, called "Birki" after a native tree, includes an all-access pass to the spa as well as changing rooms, showers, and bath products. The other two tiers include a free towel and a drink at the swim-up bar. If you splurge for the most luxurious ticket, you'll also get a two-course meal at Ylja, a sustainable restaurant helmed by Icelandic chef Gísli Matt.

Laugarás Lagoon is located on the popular Golden Circle route, making it the perfect pit-stop on your road trip. This 185-mile loop passes by Icelandic highlights, including Thingvellir National Park, Gullfoss waterfall, and Geysir geothermal area. If you prefer a more authentic, local experience, take a dip in the Secret Lagoon, just 20 minutes down the road from Laugarás Lagoon in Fludir. Built in the 1890s, it's Iceland's oldest geothermal swimming pool.