For a country that banned strong beer until 1989, Iceland certainly knows how to party.

"Walking down Reykjavik's main street at 3 a.m. on a Friday or Saturday, even in the dead of winter, the sidewalk is still packed," says Anna Andersen, editor of the local English-language newspaper Reykjavik Grapevine.

Beyond the traditional beer halls with their thumping music, the 11 nightspots below let you sip craft cocktails in style or dance until sunrise.

Partner links: booking through them supports the blog at no extra cost to you.

At the end of the list you'll find a few tips for visiting Reykjavik's bars that will help you blend right into the scene.

Kex Hostel: a bar in an old biscuit factory

11 of the Coolest Bars in Reykjavik — photo 1

One of the happier stories to come out of Iceland's 2008 economic crisis, Kex sits inside a derelict cookie factory that dodged demolition when plans to put up a skyscraper in its place fell through.

The owners turned the building into a stylish hostel, bar, and diner, naming it after the Icelandic word for "biscuit."

Travelers and Reykjavik locals alike drop by for a beer and the chance to catch an impromptu gig.

Johannes Agustsson, founder of the local indie label 12 Tonar, recommends keeping an eye out for shows at Kex by up-and-coming artist Mr Silla and the three-piece band Samaris.

Kex Hostel, Skulagata 28. Tel: +354 561 6060

Kaffibarinn: an institution

Kaffibarinn has been around so long that current staff can't recall the whole backstory of its London-Underground-style logo, yet it remains one of Reykjavik's most popular nightspots.

"We put a lot of effort into hiring good DJs, and our staff is really tight-knit, which helps our customers feel like part of it all," says manager Katerina Hauptmann.

By day it's a cool little coffeehouse, but by night Kaffibarinn gets wildly crowded as it turns into a bar.

Be sure to try Topas or Opal (local licorice liqueurs) and Iceland's own Reyka vodka.

Kaffibarinn, Bergstadastraeti 1. Tel: +354 551 1588

Gallery Bar: part art gallery, part gentlemen's club

The Gallery Bar at the Holt hotel is a rare example of a hotel bar you actually want to visit, one of the classiest places in town for a quiet, quality drink.

"The bartenders here really know how to make a drink, which you can't say about a lot of places in Reykjavik, where most people only drink beer," says Andersen.

There are red leather club chairs to sink into and tempting cocktails of the day.

"You might find yourself alone with your thoughts here, but you'll be in good company: the walls are hung with paintings by Iceland's most famous artists."

Gallery Bar, Bergstadastraeti 37. Tel: +354 552 5700

Snaps: comes attached to "the best damn restaurant"

11 of the Coolest Bars in Reykjavik — photo 2

Snaps, a perennial winner of the Reykjavik Grapevine's "Best Damn Restaurant" award, is the perfect spot for a social gathering and affordable food.

With its glass walls and hanging plants, the place feels like a giant, cozy greenhouse, and people wander in for a beer only to realize they have no reason to leave.

There's a piano in the corner if you feel like humming along to a tune.

Snaps, Thorsgata 1. Tel: +354 511 6677

Le Chateau des Dix Gouttes: retro French style with Icelandic wine

A retro cafe by day, a French lounge bar by night, and yes, it sells rhubarb wine.

Known as Tiu Dropar ("Ten Drops") during the day, this cozy, grandmotherly-plush basement cafe gets a nightly mini-makeover from owner David Bensow, who reopens it as a French-themed lounge bar.

One of the few dedicated wine bars to pop up in Reykjavik, Le Chateau sells Iceland's only wine of the Kvoldsol label, made from crowberries, rhubarb, blueberries, and Icelandic herbs.

Le Chateau also serves cheeses, waffles, and snacks to the sound of Edith Piaf.

Le Chateau des Dix Gouttes, Laugavegur 27. Tel: +354 551 9380

Micro Bar: for beer nerds

11 of the Coolest Bars in Reykjavik — photo 3

This fun little downtown brewpub, Iceland's newest microbrewery, champions small breweries from across Iceland and beyond.

With mountain murals by local cartoonist Hugleikur Dagsson, it's a great place to settle onto a stool and sample anything from local Kaldi beer to Scotland's Tactical Nuclear Penguin.

Micro Bar is located inside the Center Hotel but isn't affiliated with it, in case you can't quite make it home.

Micro Bar, Austurstraeti 6. Tel: +354 847 9084

Slippbarinn: Reykjavik's first cocktail bar

It only opened a year ago, but this vintage-styled watering hole in the lobby of the Scandi-chic Reykjavik Marina hotel became the city's first true cocktail bar.

"Cocktail culture in Iceland is very young, but it's picking up fast," explains Slippbarinn's master mixologist Asgeir Ma.

On any given night you'll find Reykjavik locals and hotel guests alike sampling Ma's ever-changing creations, blended with homemade syrups and freshly squeezed juices.

Right on the harbor's edge, a bar stool here can, on a good night, offer a view of the Northern Lights.

Slippbarinn, Myrargata 2. Tel: +354 560 8080

Loftid: a place with a dress code

One of Reykjavik's newest bars and one that has deliberately moved beyond beer, Loftid draws expats and mature, well-off locals with its quality cocktails.

As one of the only spots in town with a strict dress code, Loftid keeps an extra touch of class, and while you won't find anyone dancing on tables here, the mood is far from stuffy.

Loftid, Austurstraeti 9. Tel: +354 551 9400

Harlem: a (street) art spot

Some tourists are pleasantly surprised by the flourishing street art in Reykjavik, and it can certainly lift the mood against the city's rather muted palette.

Sixteen street artists were commissioned to leave their mark on the interior of Harlem, a moody downtown bar that draws a suitably alternative crowd along with some of the city's best DJs.

"Come early, before the crowd arrives, to take in the amazing artwork, then stick around to cut some shapes on the dance floor," advises Agustsson.

Harlem, Tryggvagata 22

Kaldi: has Icelandic beer on tap

11 of the Coolest Bars in Reykjavik — photo 4

Created as a healthier alternative to the heavily adulterated international beer widely drunk in Iceland after the ban ended, Kaldi beer (brewed to a special Czech recipe) was warmly received by Icelanders in 2005 and has sold well ever since.

Happily, you don't have to travel to the brewery in northern Iceland to drink it fresh: this industrial-styled Reykjavik bar offers four beers on tap, including the crowd-favorite unfiltered brew.

Kaldi, Laugavegur 20b

Olstofa Kormaks og Skjaldar: a modest gem

This unremarkable downtown bar, known simply as Olstofan, is a regular haunt for artists, writers, musicians, and cool guys over 30 who like to keep things simple.

There's no dance floor and no soundtrack drowning out your conversation; Reykjavik locals come here to settle cozily into the wooden booths and relax with a pint of cold, homegrown Brio beer (in 2012 it beat out more than 4,000 other beers to take first place at the World Beer Cup).

Olstofan, Vegamotastigur 4. Tel: +354 552 4687

Reykjavik bar etiquette: there isn't much of it

Most Reykjavik bars have no dress code, so if you like you can walk into just about any of them in a Gore-Tex jacket and hiking boots.

Most bars close at 1 a.m. Sunday through Thursday and stay open until 4:30 a.m. on Friday and Saturday.

The legal drinking age in Iceland is 20, but many bars set their own age limits of 21 or 22.

Most downtown bars offer happy hours: download the Reykjavik Grapevine's Appy Hour app to keep track of them.

Editor's note: This article was published in 2013. It was reformatted and republished in 2017.