A great camping area close to Egilsstaðir. Located in a forest by Lake Lagarfjlót. Facilities are good and you can easily find somewhere a little private to put your tent.
There is another camp area close by called Höfðavík. Here is a list of facilities so you can decide which one is a better fit for you.
Atlavík:
Two toilets houses with hot and cold water
facilities for dishwashing
toilet for the disabled
waste disposal for campers
outdoor barbeque
tables, and chairs
playground
Note - there are no electrical outlets for campers in Atlavík.
Höfðavík
Three toilet houses with hot and cold water
showers
toilet for the disabled
electrical outlets for caravans and campers
waste disposal
outdoor barbeque
tables, and chairs
playground