The village of Tálknafjörður is situated in the land of Tunga on the northern side of Hópið in Tálknafjörður. The fact that the fjord is closed by Sveinseyraroddi along with the deep waters provides perfect natural conditions for the harbour, Hópið. This was well known by foreign fishermen, such as the English, who used the harbour for shipping. The village was called Sveinseyri, or Tunguþorp, names drawn from the land where the village was built.

At the mouth of Tálknafjörður, on the southern side, the mountain Tálkni rises as high as 472 meters. On that side of Tálknafjörður a road passes through beautiful surroundings all the way to Suðureyri. From Lambeyri, a hiking path, suitable for most, goes over the Lambeyrarháls into the Litlidalur valley in Patreksfjörður. Close by is Suðureyri (not the village in Ísafjörður county) where around 1900 Norwegian whale hunters built and operated a whaling station. The station was put to use again in the years of 1935-39 by Icelandic whale hunters but is now deserted. Today the great buildings are grand monuments of times past. Nearby is the valley of Suðureyri, Suðureyrardalur, the biggest valley on the south side of Tálknafjörður.

Land is limited in Tálknafjörður. Botnsdalur valley which is at the bottom of the fjord is the biggest valley in Tálknafjörður.  Here the trout river Botnsá runs through the Botnsgljúfur canyon and into the sea. From Botnsdalur there are many old hiking and horse riding paths over the mountains and heaths.

Today Tálknafjörður is a modern fishing village with the population of approxm. 300. When the fish factory was built in the 1940s the population grew and has been growing ever since. The Tungufell and surrounding mountains shield the village from the strong, cold north wind, providing moderate weather conditions for the growth of trees and other vegetation. In the northern part of Tálknafjörður hot water springs from the earth. This pure energy is used for fish farming and heating the swimming pool and the sports stadium. A perfect way to enjoy the surroundings is to take one of the many interesting hiking paths that start in or near the village. And what could be better than to stretch tired legs by taking a bath in one of the three natural hot pools in the beautiful landscape at the tongue of the highest mountains of Tálknafjörður!