The first lighthouse in Iceland was built on Valahnúkur in Reykjanes in the year 1878. By 1905 earthquakes and surf had damaged Valahnúkur so much that there was the risk of the lighthouse falling into the sea.

A new lighthouse was therefore built in 1907-1908 on Bæjarfell hill in Reykjanes and the old one was demolished with an explosion on april 16th 1908. A survey which Rögnvaldur Guðmundsson supervised in 2007 for the Icelandic Maritime Administration led to the conclusion that Reykjanes lighthouse was the most popular lighthouse among Icelanders. The lightsignal height is 69 meters above sealevel but the actual height of the lighthouse is 26 metres. Reykjanes lighthouse also has a radio beacon with a correction signal. There is carved rock and concrete in the lighthouse. Architect Frederik Kjørboe and engineer Thorvald Krabbe designed the lighthouse. The operation of Reykjanes Lighthouse is under the supervision of the Icelandic Maritime Administration.