The insider's guide, from travelers who've actually been through.
Keflavik International is a single, no-frills terminal 50 km from Reykjavik, built for connections rather than lingering. There is one lounge, one well-known duty-free shop, and a long walk if your gate sits at the far end of the pier. Under 6 hours, plan to stay airside. Past 8, a real trip into Reykjavik or out to the Blue Lagoon becomes realistic.
Before your layover here
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The Icelandair Saga Lounge is the only lounge airside, tucked in the North Building near gate D20. It has a hot buffet, two shower suites stocked with Blue Lagoon toiletries, a fireplace seating area, and Wi-Fi that beats the free terminal signal. Two showers is not many, so do not count on one if you land in the middle of a busy departure bank.
Free Wi-Fi covers the whole terminal, and unlike a lot of European hubs, KEF hands out luggage carts and offers device charging stations at no charge. The duty-free shop sits in the arrivals hall just past customs rather than in departures, one of the better ones in Europe for alcohol and skincare prices, but you only walk past it if you are clearing immigration, not connecting airside. For a real meal, Mathus Food Hall in the main concourse serves Icelandic fish and chips, lamb soup, and burgers from roughly 2,500 ISK.
Iceland is in the Schengen zone. Most Western passport holders (US, UK, Canada, Australia) get 90 days visa-free, though ETIAS authorization is required for visa-exempt non-EU travelers starting in 2026. Verify current entry requirements before you travel, Schengen rules have shifted more than once recently.
If you have the time to leave, the 6-hour Reykjavik layover guide lays out the Blue Lagoon versus downtown decision, and the Reykjavik city guide covers the rest of what to expect.