The area is known for its waterfall, Skógafoss, on the Skógá river, which springs from 60 metres at the top of an eroded cliff. At Skógar is a folk museum, Skógasafn, open daily, all the year, as well as a museum on transport in Iceland.
Not far from Skógar is the Kvernufoss fall. Further upstream on the Skógá river there are many other spectacular falls. While climbing in the small forest behind the old school, some ruins of old farms can be seen and easily accessed.
This town was highly affected by the eruption of the Eyjafjalla volcano in 2010.