Bláhnjúkur (Blue Mountain in English) is in the beautiful “Landmannalaugar” area. It’s very easy to hike to the top, very obvious track all the way to the top. The view from Bláhnjúkur is stunning, 360 degree view over the very colorful Landmannalaugar .
The track down Bláhnjúkur is one of the best mountain bike rides in Iceland. Beware though: there are usually lot of people hiking up there so it probably better to go in the evening to get a good ride down. There are three routes down the mountain, each one better than the other.