There is also a swim-up bar serving smoothies and sparkling wine (alcohol is allowed, but Icelanders consider heavy drinking in hot water dangerous due to rapid dehydration and vasodilation). Hidden from the casual selfie-taker is the Blue Lagoon’s most serious function: the Psoriasis Treatment Center . This is a separate, clinical wing of the facility recognized by the Icelandic health authorities as a legitimate medical treatment center.

In the center is the , a floating wooden hut where attendants scoop buckets of white geothermal mud from a vat. Guests smear it on their faces, looking like tribal warriors from a sci-fi film. To the west is the Steam Cave —a man-made grotto carved into a lava fissure, where dry, mineral-rich steam blasts from the rock, opening sinuses and pores.

In 2018, the Blue Lagoon launched a sustainability initiative: the , which turns waste algae from the water filters into bioplastics and organic fertilizer. They also capture excess heat from the power plant to warm nearby greenhouses, growing tomatoes and cucumbers. The 2023-2024 Volcanic Crisis No article on the Blue Lagoon is complete without addressing the elephant in the lava field: the volcano. In November 2023, seismic swarms and magma intrusion forced the evacuation of Grindavík , a fishing town of 3,800 people just 6 km southwest of the lagoon. Fissures opened in the earth, spewing lava fountains 100 meters high.