The town, built on a raised beach facing the fjord, backed by low ridges, is a cultural and commercial center for the district of Skagafjörður.
Sauðárkrókur is the largest town in the area with a population of 2700. There is a hospital, school and college, swimming pool and sports center, golf course, hotel and guest house and all other general amenities and services which adhere to town life.
Various industries support the economy in the town, such as a Rock Wool factory, salt fish and shrimp factories, tannery, knitting & sewing mill and other smaller industries.
The Historical House exhibits a number of interesting collected items from years gone by. The Smithy is an excellent exhibition of the life of an iron monger and his wife, who adopted two forms of life into one - farm life and town life.
The Skagafjörður Library and Archives are in the Safnahús in Sauðárkrókur and the same building often houses art exhibitions of local talent.
Organized trips to the island Drangey and other interesting places are on offer at Sauðaárkrókur as well as a horse rental.