August is a month of local festivals and a great time to visit to infuse yourself in local culture. The weather is still (generally) good for sightseeing around the country as well.
The first weekend of August is a long weekend (First monday in August is a public holiday) and tens of thousands of locals flock to festivals in the countryside. The most popular one being “The independence” festival in the Westman Islands. Everyone needs to go there at least once in their lifetime, it’s an unforgettable experience if you want to party with locals. Later in the month, Gay Pride is celebrated in Reykjavik and the annual Cultural Night is celebrated towards the end of the month.