This wide and short bay is situated between the headlands Geirolfsgnupur and Tharalatursnes. It was permanently abandoned in 1959, but the houses have been maintained for use during summer and holiday houses are rented to travellers for sleeping bag accommodations. The landowners have also built a swimming pool, which is very popular. The old farmhouses stand on a mound down by the sea and the others are further inland. The abandoned farm Saebol is on the southern side at the foot of Mt Sigluvikurgnupur. Another farm stood by a warm spring at the foot of Mt Midmundahorn. Geothermal activity is considerable in the area and the warmest hot spring measures about 64°C (147°F). The hot spring closest to the sea is used for the swimming pool Hestavallalaug, which was constructed in 1938. Driftwood counted among the most important advantages of the area in the past and still nowadays, during summer, the landowners exploit this resource and use their sawmill for the purpose. The rocky hillocks in the lowland area are a good example of glacial erosion and an excellent spot for a good view over the surroundings.
The Book of Settlements mentions the settler Geirolfur, who ran his ship aground at the headland Geirolfsgnupur and built his farm on the Geirolfur Bay. The freestanding rock off the headland is called The Bishop and the nearby skerry resembles a halberd and was named accordingly, Geirholmi. Cove Sigluvik is situated between he headland and Mt Sigluvikurnupur. Further inland is a well-vegetated lowland area, which was a barren, sanded area in the past. Up there, rather far away from the present sea level, is a corroded chain fastened in a cliff, which was used to tie up vessels in the past. The longest glacier snout of the northern half of the Drangajokull glacier creeps into the valley and discharges River Reykjafjardaros. In front of the glacier tongue are three prominent moraines. The latest one was created when the snout advanced during the period 1914-20. Usually basking seals occupy the skerries close to the coast. The landowners render services to tourists during summer by offering sleeping bag accommodations, a camping site and the nice swimming pool. In case of emergencies, a small airstrip is nearby.