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One of the three branches that make up the Reykjavik Art Museum, this renovated 1930's warehouse has a permanent collection of native works, including those of Erro, an Icelandic-born artist who was based in Paris and best known for his large-scale comic-book-styled dreamscapes and montages. There are usually two or three temporary exhibits of Icelandic art or international contemporary art on display, as well.

The second floor has a cafe with excellent soups and a wonderful reading room with hundreds of books, children's toys and a view over the waterfront.