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.

[1] 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.

[5] 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,[7] 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.

[10] Having a heated pitch is necessary, due to cold and snowy winters in Iceland and also because of the new requirements of UEFA, which indicates that matches for some teams in the qualification competition, for the UEFA European Championship, shall also be played in the winter.