The primary industry is fishing. The settlement was established relatively recently. The former general store, the oldest building in the town, is now a geological centre with exhibits devoted to the volcanologist George Walker and to the linguist and literary historian Stefán Einarsson, who was born in Breiðdalur.[2][3] The former fish factory has also been preserved. Breiðdalsvík has a hotel and a craft brewery. The Breiðdalsá is popular for salmon fishing.[1]
On 10 September 1942, Breiðdalsvík was the location of one of the few World War II air raids in Iceland: a German warplane strafed a residential building called Hamar, hitting it with 9 bullets. The building was occupied, but there were no injuries.[4]