Valagil Gorge is a beautiful volcanic nook completely off the beaten tourist paths (welcome to the Westfjords) featuring a stunning cascade of waterfalls.
You can find Valagil right next to road number 61, about 9 kilometers south of Súðavík, where there is a small parking lot at the very end of Álftafjörður fjord (GPS: 65.966996, -23.087921). From there, follow the marked trail for about 30 to 40 minutes.