The Keilir Golf Club was founded in 1967. The club was able to acquire a spectacular land on the Hvaleyri peninsula for a nine hole golf course. At that time there were few small farms on the peninsula but with the help from the town council of Hafnafjördur the club was able to get the land for the golf course. The land was ideal for a golf course and a former national champion design the first 9 hole golf course. In 1971 the club got the Swedish golf designer Nils Skjöld to design a new 12 hole golf course on the peninsula. The construction of the new front nine in the lava field was finished in 1997 and since then the golf course has been an 18 hole golf course. The course is currently featured on the Top 100 Golf Courses in Europe.