I had breakfast at Sandholt Bakery on a quiet Reykjavik morning, expecting a solid pastry and maybe a good coffee.

What I didn’t expect was to fall in love with a slice of sourdough bread. It came lightly toasted, slathered with Icelandic butter, and honestly stole the whole meal.

If you’re planning a visit to Reykjavik, trust me, don’t skip the sourdough.

Sandholt Bakery in Reykjavik

Sandholt Bakery is one of those places that shows up on every “must-eat” list in Reykjavik, and for good reason.

It’s been a family-run bakery since 1920, right on the main drag of Laugavegur, and still manages to feel both trendy and timeless.

You’ll find pastries, cakes, breakfast plates, and fresh bread stacked behind the counter, all baked in-house with that irresistible just-out-of-the-oven smell.

There’s a cozy sit-down café inside, but plenty of people grab something to go.

Either way, it’s clear Sandholt takes their baking seriously—and nowhere is that more obvious than with the sourdough.

The Sourdough That Steals the Show

As soon as the bread hit the table, I got it.

It was good that I added it to 11 Best Stops on a Reykjavik Food Tour-Self-Guided + Map!

Sandholt’s sourdough is crisp on the outside, soft and chewy inside, and has that perfect tang that only comes from a good, slow fermentation.

Toasted and served with Icelandic butter, it somehow made the simplest part of the meal feel like the star.

Breakfast at Sandholt: More Than Just Bread

We came for the sourdough but ended up ordering a full breakfast—and it did not disappoint.

I went with the Shakshuka with Sourdough Bread, which came bubbling hot with stewed tomatoes, perfectly runny eggs, and Italian sausage.

It was rich, hearty, and the sourdough on the side was ideal for soaking up every last bite. You can choose between beef or pork sausage, and I went with beef—no regrets.

We also tried the fried eggs, which were served with grilled and pickled peppers, more of that amazing sourdough, and your choice of bacon or Italian sausage.

It was simple, flavorful, and surprisingly filling. And of course, we added a couple of espressos to fuel the day—because no Icelandic breakfast is complete without good coffee.

Driving Ring Road? Read my Iceland Ring Road Itinerary – 41 Stops, Map & Tips (2025)!

Know Before You Go

• Location: Sandholt Bakery is located at Laugavegur 36, 101 Reykjavik, right in the heart of downtown.
• Hours: Open daily from 7:00 AM to 6:00 PM, with breakfast served until 11:00 AM.
• Reservations: Not needed—just walk in and grab a table, though it can get busy during peak hours.
• What to try: The sourdough bread (obviously), but also the shakshuka, fried eggs, and anything from the pastry case.
• To-go or dine-in: Both options are available. It’s cozy inside, but also great for grabbing a quick bite on the go.

Where Is Sandholt Bakery?

Sandholt is located right on Laugavegur, Reykjavik’s main shopping street. Just a short walk from Hallgrímskirkja and most downtown hotels.

Explore More of Iceland

There’s no shortage of great places to eat in Reykjavik, but Sandholt hits that perfect balance of cozy, delicious, and genuinely local.

Whether you’re stopping in for a full breakfast or just grabbing a slice of sourdough and a coffee, this is one of those spots you’ll be thinking about long after your trip ends.

Make sure to check out my Iceland Ring Road Itinerary – 41 Stops, Map & Tips (2025)!

Check out my 11 Best Stops on a Reykjavik Food Tour-Self-Guided + Map.

You should also get Apotek Afternoon Tea in Iceland: What It’s Like + Full Menu Review.

We also stayed at Silica Hotel Iceland: My Stay Near the Blue Lagoon.

Read all of my Iceland Travel Guides.