A common folk story of unknown age also is sometimes presented as the origin of the name, involving an elf woman who transformed her human lover into an angry red-headed whale ("Rauðhöfði"), who subsequently lived in the fjord wrecking ships, as revenge for his refusal to acknowledge their child.

During World War II, when Iceland was occupied by the Allies, a naval base of the British and American navies could be found in this fjord.

Until the late 1990s, those travelling by car had to make a long detour of 62 kilometres (39 miles) around the fjord on the hringvegur (road no.

The sizeable Laxá (Salmon River) crosses the road near the heart of Kjós; south of it lies the lake Meðalfellsvatn, home to many summer houses.

The somewhat steep trail up the rim of the deep river gorge is called Leggjabrjótur, meaning "Broken Leg".

In the northwestern part of the fjord lies a tiny steep-sided island called Geirshólmi, which was for a time during the Age of the Sturlungs home to a band of outlaws led by Svarthöfði Dufgusson who regularly raided the farms on the mainland.