Backdropped by Mount Esja and situated on the southern shores of Faxaflói Bay, Iceland's capital city is home to half the island's population. The Norseman Ingólfur Arnarson named Reykjavík around 874 after the Icelandic words for smoke, reykur, and bay, vík. And it's believed that Reykjavik is home to the first permanent settlement in Iceland. Today, Reykjavik is known for its rows of colorful houses, natural beauty, and outdoor activities—as well as for being one of the cleanest, greenest, and safest cities in the world. Travelers will want to check out Hallgrímskirkja Church, Old Reykjavik, and Perlan, along with Iceland's many hot springs and geysers. The city is also famous for its weekend nightlife. The locals tend to go out late, so bars that may look quiet earlier in the evening will often fill up quickly after midnight on the weekends. Visitors should check out Laugavegur and its side streets for live music and other nightlife venues.