Icelandic Knitting: Tradition, Wool and Where to Find It

Iceland has a lot of things going for it. Geysers, glaciers, the northern lights. But ask any local what they are most proud of, and a hand-knitted wool sweater might just make the list. Icelandic knitting is not a trend or a hobby here. It is a tradition that has shaped the country's economy, identity, and daily life for centuries.

More than just a souvenir, the Icelandic lopapeysa is a survival tool turned national icon. If you are planning a trip to Iceland, understanding its traditions gives you a whole new way to connect with the culture. From the wool on the sheep to the sweater on the shelf, the story runs deeper than you might expect.

The History of Icelandic Knitting and Wool Traditions

Icelandic knitting is a traditional craft built around lopi wool from Icelandic sheep. The most famous thing made from it is the lopapeysa. It is a sweater with a circular yoke pattern, and it has become a national symbol that Icelanders of all ages still wear today.

Knitting has been part of daily life here since the 1500s, when Iceland was isolated, and imports were limited. Sheep arrived with Norse settlers over 1,100 years ago, making wool essential for surviving harsh winters. By the 18th century, knitted socks and sweaters were traded with merchants for grain and other essentials.

The history of the lopapeysa dates back only to the 1950s. Its round-yoke design was inspired by a Norwegian pattern from the 1930s, influenced by Greenlandic Inuit clothing. After Iceland gained independence in 1944, it became a symbol of national identity. Most people think it has been around for centuries, but it has not.

What Makes Icelandic Wool Unlike Any Other

Iceland has around half a million sheep for a population of roughly 400,000 people, and because of that long isolation, their wool developed into something found nowhere else. It has two layers: tog on the outside, which is long and water-resistant, and þel on the inside, which is soft and warm. Together, they keep you warm even when the wool gets wet.

How to Find an Original Lopapeysa

If you want to find an original lopapeysa, here is what to look for. A lot of sweaters in Iceland look like one, but not all of them are. A genuine lopapeysa has four features:

• Made from 100% Icelandic lopi wool
• Hand-knitted in Iceland
• Seamless, with no seams at all
• Has a circular yoke pattern from the shoulders to the neckline, featuring geometric shapes, the eight-petal rose (áttblaðarós), Icelandic horses, and birds.

When shopping, look for the label "handknitted in Iceland." A label reading "designed in Iceland" often means the sweater was knitted abroad, possibly by machine. Machine-knitted versions may look similar, but they’re generally not considered authentic lopapeysas.

• Check the label before you buy
• Smaller shops outside Reykjavík and second-hand stores tend to charge less than city center prices
• Expect to pay between 30,000 ISK to 60,000 ISK ($215 to $430 USD), which reflects the hours of skilled work in each piece

A genuine lopapeysa is one of the best souvenirs from Iceland you can take home. The price reflects the hours of skilled work that go into each one.

Where to Buy Icelandic Wool and Lopi Yarn in Iceland

Shopping for Icelandic knitting is part of the trip. You can find lopapeysas at a remote guesthouse, a Westfjords gas station, or a table at a local market. Many accommodations in Iceland stock a small selection of hand-knitted pieces. Do not be surprised if your guesthouse has a basket of mittens sitting near the front desk.

1. Icelandic Knitting in Reykjavik

• The Handknitting Association of Iceland (Skólavörðustígur 19) is the top stop in the city. The upper floor has finished sweaters, hats, and mittens. The lower level has a full wall of lopi in natural and dyed colors.
• Álafoss (Álafossvegur 23, Mosfellsbær) is a 20-minute drive from central Reykjavík, inside an old factory building next to the Álafoss waterfall. It has been selling Icelandic wool since 1896.
• Icewear Magasín carries lopi alongside yarns from other Nordic countries. You might even find staff knitting on the shop floor.
• Rammagerðin stocks Léttlopi and Einrúm yarn, a blend of Icelandic wool and Thai silk.
• Storkurinn moved to Síðumúli 20, about an 8-minute drive from the city center. It carries a broad range, including hand-dyed yarns from local dyers.

2. Icelandic Wool and Crafts in West & Northwest Iceland

• Ullarselið (The Wool Center) in Hvanneyri sells hand-spun yarns and traditional garments made by local craftspeople, often using wool from the Agricultural University's heritage sheep.
• KIDKA Wool Factory Shop in Hvammstangi is the kind of place where you might walk in for a quick look and leave with a bag full of yarn.

3. The "Woolen Circle" in South Iceland

• Uppspuni Mini Mill and Yarn Shop near Hella is about an hour from Reykjavík. It sells locally produced yarn and shows how Icelandic wool goes from sheep to skein, making it a good stop on the way to the South Coast or Golden Circle.
• Hespa Plant Dye Studio is run by Guðrún Bjarnadóttir, a biology teacher who dyes yarn using Iceland's native plants and lichens, with no synthetic dyes. Her yarns are sold nationwide, but visiting the studio gives you the full picture.
• Þingborg Wool Store in Selfoss has been part of Iceland’s knitting tradition for decades, offering Icelandic wool yarn, hand-knitted lopapeysa sweaters, and locally made wool garments.

4. Knitting Traditions in North and East Iceland

• Icewear has stores in Akureyri (Hafnarstræti 106) and Húsavík (Stórigarður 1), both easy stops along the northern Ring Road.
• Smaller towns and guesthouses in the north and east carry hand-knitted pieces made by locals, which tend to feel more personal than city shop finds.

How to Try Icelandic Knitting Yourself

If you have ever watched someone knit and thought, “I could do that”, Iceland is the best place to find out. Lopi is forgiving, the locals are proud to teach it, and the worst that can happen is you go home with a very wonky hat. If you are new to it, our ultimate lopapeysa guide covers everything you need to know before you cast on.

Several wool shops and cultural centers in Reykjavik offer drop-in knitting workshops, most of which are open to complete beginners. You do not need to bring anything, since materials are usually included in the session fee.

Lopi yarn costs roughly a quarter of US prices, so many travelers book their flights to Iceland with a knitting kit already on their shopping list. Kits containing yarn, needles, and a pattern are sold at most of the shops listed above. If you’re curious to try it yourself, this guide on how to knit a lopapeysa walks you through the basics.

Experience Iceland Through Its Knitting Traditions

Icelandic knitting connects you to the sheep on the hillsides and the farm workers who knitted six sweaters a week to survive. It also connects you to the mid-century Icelanders who turned a practical garment into a national symbol.

For many visitors, exploring knitting culture ranks among the most memorable things to do in Iceland, alongside glacier hikes and geothermal baths. Whatever you take home, the story behind it stays with you long after you leave. And if you do pick one up, our guide on how to wear a lopapeysa will help you get the most out of it.