Hnífsdalur is a small village between Ísafjörður and Bolungarvík. It has some 200 inhabitants, many of whom seek work in Ísafjörður, only 4 km away. The traffic is two-way, though, as Hnífsdalur is the home to the largest fisheries company in the Westfjords, HG, which has around 250 employees on their payroll.
No actual services can be found in the quiet village, but it is a great place for nature lovers and outdoor enthusiasts. The deep valley that the village derives its name from is lush and green, with a river winding through it. Multiple hiking trails can be found in the valley and surrounding mountains, both moderate and challenging. Hnífsdalur is easily reached by bus, with multiple departures from Ísafjörður every weekday.