The fishing town of Stykkishólmur is situated in the western part of Iceland, to the north of the Snæfellsnes peninsula. With its 1240 inhabitants, it is a center of services and commerce for the area. Most of the people make their living from fishing and tourism. A ferry goes over the Breiðafjörður to the West Fjords (Vestfirðir).
The favourable position of the town was discovered rather early and in 1550 a trading post was founded at the site. Today, the most important employer of the town after the fishing industry is a convent of Catholic nuns.
The town was named after a small island in front of the harbour with the name Stykkið (meaning the piece in Icelandic). The nearby mountain of Helgafell is the burial place of Guðrun Osvifsdóttir, a heroine of the Icelandic sagas.