Reykjavík is the capital of Iceland, its largest city and, with a latitude at 64°08' N, the world's most northern national capital. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay. With a population of more than 117,000, it is the heart of Iceland's economic and governmental activity.

Despite its extreme north Atlantic location, Reykjavík is not as cold as might be expected. The average mid-winter temperatures are no lower than those in Toronto or New York City. The climate is subpolar oceanic. This is because the Icelandic coastal weather is moderated by the warm waters of the Gulf Stream.