Iceland's first lighthouse was built in 1878 on Valahnúkur in Reykjanes. By 1905, earthquakes and heavy surf had damaged Valahnúkur so severely that it was in danger of collapsing into the sea.
Therefore, a new lighthouse was built on Bæjarfell hill in Reykjanes in 1907–1908. The old lighthouse was destroyed by an explosion on April 16, 1908. A 2007 survey conducted by Rögnvaldur Guðmundsson for the Icelandic Maritime Authority found that the Reykjanes Lighthouse was the most popular lighthouse among Icelanders.
The height of the beacon is 69 meters above sea level, but the actual height of the lighthouse is 26 meters. The Reykjanes Lighthouse also has a radio beacon with a correction signal. The lighthouse is constructed of hewn rock and concrete. The lighthouse was designed by architect Frederik Kjørboe and engineer Thorvald Krabbe. The operation of the Reykjanes Lighthouse is supervised by the Icelandic Maritime Authority.