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Bildudalur is a village situated on the coast of Arnarfjörður, one of the Westfjords in Iceland. It is situated in the Vesturbyggð municipality and has 200 inhabitants (as of January 2016).The village prospered in the 19th century thanks to sound business enterprise and the booming fishing industry. Ólafur Thorlacius (1761–1815) set up business in Bildudalur following the end of the Danish trade monopoly. He was one of the most influential businessmen in Iceland at the beginning of the 19th century. He bought and sold fish, traded goods and ran his own small fishing fleet. One of his successors, Pétur J. Thorsteinnsson (1854–1924) successfully continued this operation.
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The climate in Bildudalur is warm and temperate. The rainfall in Bildudalur is significant, with precipitation even during the driest month. The climate here is classified as Cfb by the Koppen-Geiger system. The average annual temperature in Bildudalur is 4.2 °C. The average annual rainfall is 1165 mm.
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