This bay is between the peninsulas Furufjardarnupur and Tharalatursnes and the bays Furufjordur and Reykjarfjordur. River Tharalatursos discharges a part of the glacier Drangajokull, creates a barren sanded area at its estuaries and fertile sand spits with beautiful spreads of arctic river beauty (Icelandic rosebay) during late summer. This plant is not widely dispersed in the Westfiord Area. The area of the bay was not considered attractive for agriculture, but the seal hunting, driftwood and a good landing place for the fishing boats carried some weight. According to old land registers the farm there had been abandoned for as long as people remembered and the last occupants of the farm left it permanently in 1946.
The Saga literature and later legends contain stories about villains, who sought shelter in the sparsely populated Strandir District and on the Tharalatur Bay. The Eyrbyggja Saga mentions the violent Osvifur, who fortified his farm there and robbed and plundered in the area. The farmers of Strandir besieged his farm and eventually he gave in and agreed to leave and never come back.