Otradalur has been inhabited since the earliest settlement of Vikings in Iceland. The nation converted to Christianity in the year 1000 and it is known that there was a church in Otradalur for over 700 years. The Church was moved to Bildudalur village around 1907, I believe.
There remains a small graveyard on the property, which gives the place a very nice presence.
In addition, it is believed that there is a heathen grave site near the sea shore.
