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.   

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