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The first information about a settlement at Skagaströnd comes from the 10th century. Then a prophetess by the name of Þórdís lived there at Spákonufell (Prophetess Hill). She crops up throughout the Icelandic sagas and her reputation was ambivalent as she was skilled in witchcraft. Þórdís was the foster mother of the first missionary of Iceland Þorvaldur Víðförli Koðránsson. Þóroddur the son of Snorri the good also lived there. The sagas tell that that Þórdís walked up to Spákonufell every day (646 meters over sea level) and combed her hair with a golden comb. It is said that she had hidden her gold in the mountain and put a spell on it so that no one could use it except women which were not baptized and who hadn’t learnt any of Gods words.

In the time of the trading monopoly Skagaströnd was the main trading center for the people in East Húnavatn County until a store was established at Blönduósi. The place was long settled by Danish merchants and shop managers with names like Hölter, Duus, Bryde, Berndesen, Schram, Hoephner, Hillebrandt and Knudsen. Port building began in the 1930s and a fish factory was established in 1944 and a herring factory was built in 1946. There were plans to expand the town to about 3000-5000 people however the herring disappeared from Húnaflói and now there are 500 people living at Skagaströnd.

People from Skagaströnd (Skagstrendingar) were the first of Icelanders to own trawlers with Freezers in 1982. In Skagaströnd is an outlet from the cooperative shop, there is a health care center, service flats for the elderly, an old folks home, a sports center, swimming pool and hot pots, guest houses, the restaurant Borgin, a 9 hole golf course, skiing slopes, a good campsite and much more.

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