Laugarás Lagoon is transforming the typical Icelandic thermal bath experience, celebrating the surrounding natural world and Iceland’s local produce across two extraordinary levels.

This autumn, Gísli Matt – the chef who put Icelandic archipelago Vestmannaeyjar on the global culinary map – brings his revolutionary approach from the acclaimed SLIPPURINN restaurant (2012-2025) to Ylja restaurant at Laugarás Lagoon, Iceland’s first cascading waterfall geothermal destination.

At Ylja, meaning ‘warmth’ in Icelandic, Gísli is crafting an entirely new restaurant concept, sourcing hyper-locally from the village of Laugarás itself.

Gísli Matt’s approach

Gísli Matt’s philosophy centres on modern techniques and classic local ingredients, sourcing directly from neighbouring farms and geothermal greenhouses in Laugarás village. Matt says: “The Laugarás area has such a unique character – the possibilities with geothermal heat are inspiring. What excites me most is the chance to work with the incredible producers in the region, who are growing and raising things with so much care.”ADVERTISEMENTMenus will shift with Iceland’s dramatic seasons, featuring wild herbs, seaweeds, and berries.

“I also feel a strong urge to prove that a project of this scale can be done in true partnership with nature – minimising waste, and showing that sustainability and ambition can go together.”

Ylja: From casual through to fine dining

Ylja offers distinctive dining that mirrors the natural rhythm of the lagoon journey. During the day until 4pm, guests enjoy light options including the Ylja soupboard featuring herbal pesto, tomato salad, and freshly baked bread. Two-course options are available, with seasonal offerings that might include the likes of slow-cooked cod with herb sauce and dulse seaweed, or grilled lamb leg with pearl barley, finishing with signature skyr and white chocolate mousse. The grab-and-go section ensures quick, quality options throughout the day.

The wine list has been carefully curated, covering a wide range of grapes and varieties, including organic and natural wines. Smaller producers and winemakers tell their stories through their wines, and endless pairing options. Just like the dishes, Ylja’s beverages evolve with the seasons and farmers markets, resulting in a dynamic, ever-changing selection.

From 5pm, Ylja transforms into a sophisticated fine dining spot, showcasing Gísli’s artistry through two five-course journeys evolving with the harvest, showcasing the nation’s finest produce. Think cured arctic char with horseradish cream and slow-cooked cod loin with herbal sauce, and grilled celeriac “steak” with pearl barley and almond miso.

The restaurant’s commitment to sustainable sourcing means that advance reservations help the kitchen plan precisely for minimal waste while maintaining its hyper-local ethos. Guests who pre-book both lagoon and restaurant visits support this sustainable approach.

Cocktails that capture Iceland’s essence

The bar programme, led by an expert beverage team, crafts cocktails that embody the Laugarás landscape. The signature Laugarás Highball blends Himbrimi pure Icelandic gin with citrusy lemon verbena and bright wood sorrel, lifted by rosemary and lavender, grounded with sage – each sip is “like a breath of Laugarás”.

Innovation drives every creation: Spice & Smoke transforms the margarita with tequila, green tomatoes, and fermented brine, clarified with birch-smoked milk. Coffee & Rye reinvents the Espresso Martini using brown butter-washed Rye Brennivín and coffee liqueur made from spent grounds, topped with caramel foam from leftover filtered coffee – zero waste, maximum character.

Strawberries & Sorrel showcases greenhouse-grown strawberries with wood sorrel over vanilla skyr-washed Katla Vodka, while Lemon Verbena & Lavender reimagines the classic Martini with Himbrimi Gin infused with locally grown lemon verbena and lavender-infused vermouth.

World-class dining and wellness

Beyond the à la carte offerings, Ylja provides intimate group gatherings for 10+. The private dining room accommodates up to 38 guests with artwork by Icelandic artist Sigmundur Freysteinsson, Wi-Fi, and projection capabilities – perfect for everything from corporate events to milestone celebrations.

The restaurant seats 80 indoors with additional outdoor space overlooking the lagoon’s therapeutic waters.

An all-new way to see the Northern Lights

The extraordinary combination of lagoon bathing, Aurora viewing, and Gísli Matt’s cuisine creates an unparalleled Nordic encounter. Opening perfectly timed for Northern Lights season (October-December and February-March), Ylja offers a magical culinary adventure. In October, guests can enjoy the lagoon until the last entry at 7:30pm (closing at 9pm), followed by fine dining (last restaurant seating at 9pm, closing approximately 10:30pm).

The Ösp deluxe package (available 11am-5pm) includes a two-course journey through Gísli Matt’s seasonal menu alongside full lagoon access for ISK 15,900, creating an unforgettable Northern Lights season experience.

Guests can move seamlessly from soothing geothermal waters through Iceland’s pristine wilderness to dynamic, world-class cuisine. This joyful celebration of the nation’s heritage reimagines the future – every ingredient telling the story of Laugarás village while every cocktail captures the essence of this completely unique landscape.

Christmas at Ylja: From 20th November 2025

As the festive season approaches, Chef Gísli Matt will create an enchanting Christmas menu that will transform every visit into a treasured memory for travellers during he winter season. The unique combination of relaxation amongst nature and masterful local cooking makes Ylja a memorable setting for an extraordinary Christmas. Available from 20th November, Thursday – Sunday.

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Source: breakingtravelnews.com