Rent a car — no alternative
Iceland has no trains and limited buses. A rental car is essential. The Ring Road (Route 1) circles the island in ~16 hours of driving. A 4x4 is required for highland (F-road) access.
Tip: Check road conditions daily at road.is. Weather changes fast. In winter, roads close without warning. Always carry blankets and water.
Reykjavik is walkable
The capital is compact. Laugavegur (main shopping street), the harbor, and Hallgrímskirkja are all within walking distance. City buses exist (Strætó) but you'll rarely need them.
Domestic flights save time
Eagle Air and Icelandair Connect fly to Akureyri, Westman Islands, and other towns. In winter, flying beats driving when roads are impassable.