Dill Restaurant in Reykjavik is the best restaurant in Iceland, actually it is (Noma) of Iceland. Here you will get the freshest products made possible and the taste are incredible. Booking are essential and the price are ok, just about 100US for 7 courses. Its located in Hverfisgata.
Here is what the restaurant says:
We try to use what surrounds us and embrace our old traditions in our own way. We allow our ingredients to shine in their own simplicity without all accessories but most importantly we try to have fun while we are at it.
More information here:

Dill Restaurant, Reykjavik!

Our meny

Excited before having a taste at Icelands best restaurant!

Dill Restaurant!

Pickled carrot - fresh cheese - caraway seeds

Kale - sour cream - fried onions - cheese

Potato chip - toasted peppers and sol

Dried catfish - burnt butter - dill

Salted cod, parsnip, apple, fried cod cream

Bread and lambfat butter!

Arctic char, butter and birch, mushrooms and fresh cheese

Tomato variations, buttermilk and yarrow

The kitchen was open so we could see them prepare our food!

Dill Restaurant, Reykjavik!

Salmon!

Cabbage, roe and lamb sausage

Skyr and roses, meadowsweet and meringues