Keflavik resides in the heart of the Reykjanes Peninsula and is best known as the arrival city for flights arriving and departing out of Keflavik International Airport. The settlement in the region began in the 16th century, though before that there were the occasional fishermen's camps in the winter.

Many people also know Keflavik as the home of the NATO military base which operated from 1951-2006 and now houses innovative ventures including green energy, data processing and health and wellness tourism. The base also houses a university and campuses.

Keflavik has been a trading centre since the Middle-Ages and enjoys a thriving fishing industry today. The town has an authentic look, including a picturesque harbour with surrounding restaurants and shops. There are a number of beautiful nature trails for those who enjoy a good hike. In early September, the rugged sea cliffs are dramatically lit up for the ‘Night of Lights,’ with live music, family entertainment, and a fireworks display as the inhabitants bid a fond farewell to summer.

In 1994 the town merged with two neighbouring towns, Njardvik and Hafnir, to form the municipality Reykjanesbaer. Keflavik and Njardvik who had both grown rapidly in the last century were only divided by one street and Hafnir is mere 10 kilometres away.