Bíldudalur is a small village in Arnarfjörður in the Southern part of the Westfjords. Bíldudalur is known for its impressive surroundings and warm summers. Its 200 inhabitants are involved in fishing industry, tourism and limebased algae industry. In the 19th century Bíldudalur was one of Iceland’s most modern industrial areas and birthplace of many poets, writers and singers.

The Sea Monster Museum was opened in 2009 in Bíldudalur. The museum introduces, for the first time, some of the many sea monster stories told in Iceland through centuries. Arnarfjörður area is known to be the home of many Icelandic sea monsters and the four best known monsters are shown in the museum in various ways. Bíldudalur also prides itself of the music museum Melodies of the past, an exhibition of Icelandic music memorabilia, collected by the owner Jón Kr. Ólafsson, in his long career as a pop singer.

A nine hole golf course is ideally situated just outside of town.