This forest is located to the southwest of hamlet Varmahlid.  Its area within the fenced off area in 1995 was 108 acres (17½ Ha.).  At that time close to 240 thousand trees of 22 species had been planted.

On July 24^th 1942 the Disctict Forest Committee was issued an area of 124 acres from the property of farm Reykjarholl in County Seyla near the District School in Varmahlid.  In 1943 a 1,8 km long fence was erected around it.  The planting started in 1947 and during the next two decades it continued until most of the area had been planted.  In 1950, The Iceland Forest Service took over the operation.

In the beginning the survival rate of many of the planted species was poor and they had to be replaced.  The growing forest became very dense.  Gradually experience was obtained.  The tufted high grass was a problem, because the area was not grazed, until the planters started earlier in spring, before the soil got too dry.  The problem with the grass was increased by the use of artificial fertilizer.  After the first canopy started developing it has been easier for the younger plants to survive.

In the eighties it had become necessary to start thining the forest.  Four years later the work started an since 1988 it has been a yearly procedure.  The characteristics of this forest are the many and mixed species of trees, which makes it different from most other forests in the country.  This combination of species is ideal for a recreational area.