Ólafsfjörður is a town connected to Dalvík on Eyjafjörður by the 3.5 km one-lane Múli tunnel and to Siglufjörður by the 11 km Héðinsfjörður Tunnels, opened in 2010. Fishing is the main industry in the town several trawlers make their home in the town’s harbor.
The municipalities of Ólafsfjörður and Siglufjörður merged in 2006 to form the municipality of Fjallabyggð, which literally means Mountain Settlement. Popular places for skiing and ski touring and Ólafsfjörður has been getting known for surfing in the winter time as well.
