July in Iceland means lush green valleys, near-constant daylight, and full access to most of the country’s roads and sights. With the midnight sun lighting up your evenings and long days built for exploration, it’s the ultimate month for a self-drive journey.

Whether you’re circling the island on the Ring Road, heading off the beaten path, or joining in for local festivals, July delivers Iceland at its most vibrant. And with a cheap rental car from Firefly Iceland, you have the freedom to explore your way.

the summer view of the Geysir in Iceland

🌡️ What’s the Weather Like in Iceland in July?

July is Iceland´s warmest and most reliable month for weather, with mild temperatures and plenty of sunshine, though short rain showers or wind can still appear.

RegionAvg HighAvg LowRainfallDaylight Hours
Reykjavík (Southwest)12–14 °C / 54–57 °F~7 °C / 45 °F~40 mm20-21 hours
Akureyri (North)11–13 °C / 52–55 °F~6 °C / 43 °F~35 mm21-22 hours
Eastfjords13–15 °C / 55–59 °F~5 °C / 41 °F~30 mm21 hours
  • Midnight sun: Even after solstice, you’ll still experience long, glowing nights.
  • Rain & wind: Sudden showers can happen anywhere — layering is essential.
  • Highlands: Roads are open, snow has melted, and hiking conditions are excellent.

💡 Tip from firefly: Use the endless daylight to travel early or late in the day — you’ll find fewer crowds and softer light for photos.

the Icelandic summer waterfall in the north

🛣️ Road Conditions & Driving in July

July is one of the easiest months for driving in Iceland. Nearly all main and highland routes are open, and conditions are generally dry and stable.

  • Ring Road (Route 1): Fully open and easy to navigate.
  • Highland roads (F-roads): Most are accessible by early July, though some may still have shallow river crossings.
  • Gravel roads: Dry but dusty — take care around sharp bends and loose stones.
  • Remote areas: Single-lane bridges and narrow passes are common — drive slowly and yield to oncoming traffic.

Always check road.is for conditions and vedur.is for weather updates before heading into remote areas.

💡 July is the month when you can comfortably combine the Ring Road with highland detours — if you’re driving a 4×4.

Summer in Iceland

 🚗 Choosing the Right Rental Car

By July, you can drive almost anywhere in Iceland, so your car choice depends on your route:

  • 2WD Economy Cars – Perfect for the Ring Road, Golden Circle, and South Coast drives.
  • 4×4 SUVs – Ideal for highland access and gravel roads; available models include Dacia Duster, Suzuki Vitara, VW Tiguan, and Kia Sorento.
  • Family Vans – Like the Ford Transit, great for groups and long trips with luggage.

All Firefly Iceland cars include unlimited mileage, 24/7 roadside assistance, and seasonal tires. Book early — July is peak season.

bring swimsuits to Iceland always

🏞️ Top Things to Do in Iceland in July

July offers the full Icelandic summer experience — from waterfalls and hikes to festivals and whale watching.

  • Drive the Ring Road & coastal detours: Explore waterfalls, black-sand beaches, fjords, and fishing towns.
  • Highland adventures: Visit Landmannalaugar or Þórsmörk, both accessible by 4×4 in July.
  • Wildlife & birdlife: Puffins, whales, and Arctic terns are all active this month.
  • Midnight sun hikes: Walk in the soft golden light long after sunset.
  • Hot springs: Relax in Reykjadalur, Secret Lagoon, or hidden local pools.

Festivals & local life: Enjoy concerts, art shows, and small-town fairs that fill Iceland’s summer calendar

drive the Iceland ring road with a cheap car

🗺️ Hidden Gems to Visit in Iceland in July

July might be Iceland’s busiest travel month, but with a car and a bit of curiosity, there are still plenty of quiet places to discover. Most roads are open, so it’s the perfect time to explore off-the-beaten-path destinations that shine in summer.

1. Þórsmörk Valley (Southern Highlands)

A lush valley surrounded by glaciers and rivers. In July, the F-roads open, and with a 4×4 rental, you can reach this stunning hiking area with views of Eyjafjallajökull volcano.

2. Borgarfjörður Eystri (Eastfjords)

Famous for its colorful mountains and friendly puffins. The drive there winds through dramatic fjords — a peaceful escape from the busier South Coast.

3. Rauðisandur Beach (Westfjords)

A red-sand beach that glows golden at sunset. It’s remote, scenic, and one of the quietest places in Iceland for photography or camping.

4. Kerlingarfjöll (Central Highlands)

A geothermal wonderland with steaming valleys and colorful peaks. Roads usually open in early July, revealing hiking trails and mountain huts in a surreal landscape.

5. Hvalfjörður Fjord (West Iceland)

Just an hour from Reykjavík, this fjord is often skipped due to the nearby tunnel. It hides Glymur Waterfall and tranquil hiking spots with fjord views.

💡 Tip from Firefly: All these hidden gems are reachable by car in July, but some require a 4×4. Renting one from Firefly Iceland gives you the freedom to explore Iceland’s quieter corners safely and comfortably.

the Siglufjordur Folk Music Festival in Iceland july

Photo from Siglufjordur Folk Music Festival official website

🎉 July Festivals & Events

  • Siglufjörður Folk Music Festival (early July): A beloved annual event celebrating Icelandic and Nordic folk traditions through live performances, singing, dancing, and workshops in the historic fishing village of Siglufjörður.
  • LungA Art Festival (Seyðisfjörður, mid-July): A creative gathering of artists, students, and travelers — filled with exhibitions, music, and art performances in the colorful town of Seyðisfjörður.
  • Bræðslan Music Festival (Borgarfjörður Eystri, late July): A one-of-a-kind concert held inside an old fish factory, surrounded by the Eastfjords’ mountains and ocean views.
  • Ein með öllu Festival (Akureyri, end of July): North Iceland’s biggest town celebration, featuring concerts, fireworks, local food, and a fun, family-friendly vibe.
Jokulsarlon

🧳 What to Pack for Iceland in July

July brings Iceland’s warmest weather, but don’t let that fool you — it can still be windy, rainy, or cool, especially in the evenings and highlands. The best packing strategy is to layer and be ready for anything.

👕 Clothing

  • Waterproof and windproof jacket
  • Rain pants or shell trousers
  • Warm fleece or wool sweater
  • Lightweight down or insulated jacket
  • T-shirts and quick-dry tops
  • Thermal base layers for cooler days
  • Comfortable jeans or travel pants
  • Hat, gloves, and scarf (yes, even in July)
  • Wool or synthetic socks (bring extra pairs)

👣 Footwear

  • Waterproof hiking boots with good grip
  • Comfortable sneakers for city days
  • Flip-flops or sandals for hot springs

🕶 Essentials & Gear

  • Sunglasses and sunscreen
  • Sleep mask for bright nights
  • Swimsuit and quick-dry towel
  • Reusable water bottle
  • Day backpack
  • Power bank and car charger
  • Camera or smartphone for photos
  • Lightweight gloves for highland wind

🚗 Road Trip Must-Haves

  • Snacks and travel mug for long drives
  • Offline map or navigation app
  • Reusable shopping bag
  • Car phone mount and extra cable
  • Copy of driver’s license and rental details

💡 Firefly tip: Iceland’s summer can feel like spring in the morning and autumn by night — keep extra layers in your car so you’re always ready for the next stop.

Almannagja at Thingvellir National Park

💸 Money-Saving Tips for Traveling in Iceland in July

July is the busiest travel month in Iceland, so prices rise — but there are still plenty of smart ways to stretch your budget.

  • Book early but stay flexible: Flights, rental cars, and hotels fill up fast. If your schedule allows, travel midweek or start your trip outside the weekend rush for better rates.
  • Refuel strategically: Petrol is most expensive in remote areas. Use bensinverd.is or refill in towns like Selfoss, Akureyri, or Egilsstaðir before heading inland.
  • Picnic like a local: Icelanders love summer picnics. Stock up on food at Bónus or Krónan, grab a travel cooler, and enjoy roadside meals with a view instead of restaurant prices.
  • Take advantage of free daylight: With nearly 20 hours of sun, you can explore longer each day — fitting in more attractions without paying for guided tours.
  • Stay in guesthouses or summer cabins: Many open only in summer and offer fair prices compared to hotels.
  • Save on your car rental: Firefly Iceland’s well-maintained older models are perfect for July road trips — reliable, comfortable, and much cheaper than brand-new vehicles.

💡 Pro tip: Traveling early in the morning or late at night not only avoids crowds but also lets you enjoy major attractions like Skógafoss or Seljalandsfoss in peace — for free, and often with the best light for photos. Here are more budget tips for your Iceland road trip.

A view at the Lanmannalaugar highland in Iceland

💬 FAQs About Iceland in July

happy travelling in Iceland with Firefly Car rental Iceland

🌟 Why Visit Iceland in July

July captures everything that makes Iceland magical — long days, open roads, and an atmosphere of celebration. It’s the time to hike, camp, and road-trip from coast to coast.

With a Firefly Iceland rental car, you can explore both the famous landmarks and the quiet backroads that summer finally unveils.

👉 Book your car now at Firefly.is and start your Icelandic adventure under the midnight sun.

Cheapest rental car options in our fleet

VW-POLO

VW Polo or similar | Manual (EDMN) 2022-2024

Group A Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 2 Large
  • 5 Doors
  • Manual
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

You must be 20 years of age to drive this vehicle.

Additional Features
  • Front Wheel Drive
  • 99 C02 g/km
  • Adjustable Steering
  • ABS
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
VW-GOLF

VW Golf or similar | Automatic (CDAN) – 2022-2024

Group: B2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 2 Large Bags
  • 5 Doors
  • Automatic
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

You must be 20 years of age to drive this vehicle.

Additional Features
  • 1 Small Bag
  • 2 Large, 1 Small
  • 138 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
VW-GOLF-WAGON

VW Golf Wagon or similar | Automatic (CWAN) | 2022-2024

Group: T2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

You must be 20 years of age to drive this vehicle.

Additional Features
  • Front Wheel Drive
  • 130 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
DUSTER

Dacia Duster or similar |Manual| 4×4 (CFMN) -2022-2024

Group E2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 20 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 116 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
VITARA

Suzuki Vitara or similar|Manual| 4×4 (IFMN) | 2022-2024

Group F Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
PAJERO

Mitsubishi Pajero or similar | Automatic| 4×4 (FFAR) | 2022-2024

Group: I Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 5 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 213 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking