Lake Reykjavatn (The Smoky Lake) is situated about 10 km north of the glacier Eiriksjokull. It has an area of 1,8 km² at 510 m above sea level. It is fed by cold springs and discharges into the river Reykja, a tributary to the Nordlingafljot river. This is a popular fishing lake where many nice Lake Char and Brown Trout are caught.
In the 50 km long lava field between the lake and the glacier are two known caves, which were occupied by outlaws in the past. One of them was the so-called „Mountain-Eyvind” and the other was the hideout of the last outlaw of the country, Jon Franz. This lake offers many great fishing spots, quiet surroundings and magnificent views. The road from the farm Kalmanstunga (about 40 km) is passable by 4wd vehicles.