This narrow bay is situated between the bays Hrafnfjordur and Veidileysufiord and the headlands Lonanupur and Muli. The summer sun melts the snow in the lowland areas late in summer and immediately the colourful vegetation takes over for the short summer. The spit of land Bordeyri extends into the bay’s mouth on the western side at the foot of Mt Muli. Typical for the landscape are freestanding rocky hillocks in the mountains and along the coastline.
One of the legends of the area deals with the fight between a thieving ogre and farmer Dyra-Steinthor, who had victory.
Mt Einbui splits the end of the bay into two coves. This mountain is precipitous around the top and steep screes continue downwards. It is considered a clear proof of a large central volcano in the eastern Jokulfiord Area. During low tides it is possible to pass along its seaward side when the water level of the lagoons is low enough for fording their discharges. According to popular belief those lagoons are bottomless. East of Mt Einbui is the cove Sopandi and the cove to the west is split into the two coves Rangali and Midkjos. Cove Rangali is decorated with a basaltic dyke.
The abandoned farm Kviar is on the southern end of the Muli Headland and legends have it, that two other farms existed on the bay in the past. Near one of them, Gautastadir, the oldest traces of forests in the country were discovered in about 14 million years old lava fields or basaltic strata. When the lava was running over wooded areas, the tree trunks did not burn because of the lack of oxygen and were carbonised. The Ice Age glaciation then carved through the strata and the carbon was washed and weathered away leaving clear holes.
Lonafjordur is on nat.is Saga Trail Jokulfjords