As Iceland is a very small country with population just over 300.000 people the gay scene is relatively small and mostly limited to Reykjavik. There are usually one or two gay bars/cafes and one or two clubs to go to (check out GAY DIRECTORY listing). Except for the MSC Club which is a 'men only club' you can expect to see gay and straight people having fun together, so expect the gay scene to be mixed. 

The gay scene is open and friendly and attitudes towards gays and lesbians in Iceland is very positive. Gay places to visit (January 1st, 2010) are Barbara on Laugavegur 22 (club/bar), Samtökin 78 - Queer Community Center (home of the National Queer Organization), Laugavegur 3 - 4th Floor, tel 552 7878 and the MSC Club on Laugavegur 28.