Stykkishólmur is a charming town with beautifully maintained old houses. It has an industrious harbour where boat trips around Breiðarfjörður are offered as well as the ferry Baldur to Flatey island and Brjánslækur in the West Fjords.
If you are interested in seeing the interplay of light, glass and water from every glacier in Iceland, then the Museum of Water is the place to go. If volcanoes excite you more, visit the Volcano Museum.
There is a good camping site, accommodation and restaurants in the town.