For centuries Eyrarbakki and its harbour was the main port in the south of Iceland. Eyrarbakki was “The trading centre” for the whole of the southern region. However in 1925 the importance of Eyrarbakki as a trading centre had diminished.
The oldest preserved timber dwelling house in Iceland is to be found in Eyrarbakki, its called “Húsið” (The house). The church in the village was built in 1890 and is world known for its altarpiece, it was painted by Queen Louise of Denmark, wife of King Cristina IX. Eyrarbakki also boasts of the oldest school in the country, the primary school was established in 1852.