Draugasetrið The South

Inside a huge maroon-and-black warehouse in the centre of town, Draugasetrið is a veritable haunted house run by a gaggle of bloodthirsty youngsters. A 50-minute audio guide (in many languages) recites 24 spooky stories in a series of dry-ice-filled stations. Not recommended for small fry. In the same building, the Elves Museum explains more about Iceland's fascination with these mysterious creatures and folklore. There's a gift shop out front too. Combined entry costs adult/child 2800/1800kr.