Distance: 20-21 kilometres. Route: Garður in Ólafsfjörður – Skeggjabrekkudalur – Möðruvallaháls - south of Ámárhyrna – Hólsskarð - Siglufjörður.
Maximum elevation: 630 metres. Hiking time: 8-10 hours.

Skeggjabrekkudalur valley is a fairly long valley. The valley is a lush, grassy area, and is popular for outdoor activities both in the winter and in the summer. There is a rich berry crop in the valley and from time to time a single small birch may creep along the soil because of heavy snow. As a matter of fact the valley has two names: south of the river it is called Garðsdalur valley and north of the river its name is Skeggjabrekkudalur valley. The abandoned farm Skeggjabrekka is located in the mouth of the valley. This is now where the town's nine-hole golf course is located. In 1942, the power of the Garðsá river was harnessed and it remained for a long period the only power station in the fjord, until a power transmission line was set up by the Skeiðsfossvirkjun power station in the Fljót area. In 1944, drilling for geothermal water began and as a result the Ólafsfjörður hot-water supply is one of the oldest heating providers in the country. The trails that lead through the valley are the Botnaleið trail to Siglufjörður, one trail to Héðinsfjörður and a trail through the Sandskarð pass in the Fljót area. The hike through the valley is easy – you walk along sheep paths or along a track that was created when an optical-fibre cable was laid from Siglufjörður. You can follow the track to Siglufjörður. In the middle of the valley, there is a landslide which has caused a blockage in the valley but the river has forged it way through and this landslide is now named Hólar landslide. In front of Hólar, the area is very grassy and provides a good shelter. The mountains surrounding the valley rise up to more than 900 m to the south and Skeggjabrekkuhyrna mountain rises up to 907 m in the north. It is easy to bring horses along the Botnaleið trail both to Siglufjörður and Héðinsfjörður. You hike up through a pass in the mountain range, and the pass is called Háls hill (Möðruvallarháls). When you stand up on Háls hill, you have a clear view over to Ólafsfjörður and the trail to Siglufjörður is unmistakable. To the left, there is a short distance to the Sandskarð pass and onward to the Fljót area and to the right you walk down to Héðinsfjörður fjord. When you continue on to Siglufjörður, the Ámárhyrna mountain is a good landmark. You then hike on down the mountain, soon the Hólsskarð pass lays before you. From the pass, there is an unhindered trail down to Siglufjörður, to begin with downwards along a steep scree, then follows a wave-shaped gravel plain and then finally you walk along a grassy trail along the Fjarðará river.