Raufarhöfn is the northernmost town on the Icelandic mainland, nestled on the eastern shore of Melrakkaslétta peninsula. Named after its natural harbor, Raufarhöfn was used for shipping from early on as mentioned in the sagas. It became an authorized trading post in 1833 but the village started forming after 1875.

Herring fishery was a pivotal factor in the growth of the village in the early 20th century and by 1944 Raufarhöfn was the second-largest herring station in Iceland. The local population reached 500 in the latter part of the century but during the height of the herring bonanza, there could also be over 2000 migrant workers here at times.

Raufarhöfn is now a quiet little fishing village in the process of redefining itself. All basic services can be found in Raufarhöfn and this Arctic Circle village is a peaceful setting to enjoy walks, fishing or birdwatching, and offers a front-row seat for enjoying the midnight sun in summer and northern lights in winter.

On a small elevation at the edge of the village, the Arctic Henge is being constructed. A huge stone sundial with allusions to mythology and folklore, designed to interact with the unique natural light in this village at the edge of the arctic.