Founded around 900 AD by the settler Hásteinn Atlason, it was an important fishing and trading village in previous times.

The local school is Barnaskólinn á Eyrarbakka og Stokkseyri.

The artistic experimental duo Jónsi & Alex wrote a song named after the town which appears on their album Riceboy Sleeps.

In 1949, a replica of a fisherman's hut was erected in honor of Foreman Thuridur.

[2] The Knarraros lighthouse, which is a unique blend of functionalism and Art Nouveau style, is located about 5 km (3.1 mi) away.