The idea of building a sporting venue in Laugardalur, along with some other entertainment facilities, dates back to 1871.

The committee then delivered the result later, which included building a new football stadium and a new swimming pool.

[2] Under the new stand there was opened a track-and-field facility, which operated until 2007, although there has always been all-weather running track around the pitch (upgraded in 1992).

Additional capacity can be added by bringing in two temporary stands seating 1,500 each, giving the stadium a maximum capacity of 12,800 but after the new requirements of FIFA for national football stadiums, this addition method has been forbidden.

[6] In 2024, renovations began in order to install hybrid grass and a heating system underneath the field.

For the purpose of football matches and other competitions, the stand has 4 changing rooms for players (mainly) and 2 others for referees, which also have the capability of accommodating facility for a doctor or drug test.

There have been plans by KSÍ (the Football Association of Iceland) to renovate and expand Laugardalsvöllur since 2014,[8] one year after the Iceland men's national football team reached the play-offs for the 2014 FIFA World Cup in 2013.

One option is a 17,500 capacity stadium with an open roof and heated pitch, costing 7-11 billion ISK.

In 2024, a memorandum of understanding was signed to only develop the venue as a soccer-specific stadium in the future.