Námaskarð is a geothermal area located about 5 kilometers east of Reykjahlíð, near Lake Mývatn. To the north of Námaskarð stands Námafjall Mountain, which rises to an elevation of 432 meters. The region is known for its powerful hot springs and intense geothermal activity. There are numerous steam vents and mud pools in the area, and the soil in these high-temperature zones is barren with no vegetation, largely due to the acidic nature of the soil caused by geothermal gases and sulfur deposits. The minerals erupted from beneath the surface give the land its distinctive colors.
Several centuries ago, Námafjall was heavily mined for sulfur, which was later used to produce gunpowder. The landowners, brothers who lived in Reykjahlíð, became very wealthy from this operation. In 1563, the Danish king purchased the area, and mining continued intermittently until the mid-19th century. In 1974, the geothermal area of Námafjall, along with the entire Skútustaðir region, was declared a protected site.