Fossárdalur valley takes its name from the many waterfalls that run down the valley, the name means waterfall river valley. There is a beautiful waterfall just at the entrance of the valley, the name of that one is Nykurhylsfoss. Nykur in Icelandic is a name for a myth, it looks a lot like horse and lives in water, rivers and even at sea, if you take a seat on a Nykur he will run with you in the river and drown you.
With a normal car, you can drive a little bit into the valley seeing some beautiful waterfalls and to the campsite at least in the summertime. If you have a 4×4 you might be able to drive a little further into the valley to explore its many waterfalls. In the valley, you can also find a very peaceful and beautiful campsite, see another pin for that.