Ólafsvík is a small town in Iceland on the northern side of the Snæfellsnes Peninsula. At one point in the 17th and 18th centuries, commercial vessels sailed between Ólafsvík and Denmark, and the village was one of the larger trading ports in Iceland. Ólafsvík became certified trading place, authorized by the Danish King and Danish authorities, in 1687.It is situated near the western end of the Snæfellsnes peninsula, on the north coast of the peninsula.