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Budardalur is a village of around 650 inhabitants in the fjord Hvammsfjordur, innermost off Breidafjordur. It is the service center for the area.

The area around Budardalur, i.e. Dalir, features prominently in Laxdaela Saga. Also, Eric the Red, the first European settler in Greenland, resided not far from the village, at Eiriksstadir. The village was further immortalised in more recent times by the Icelandic pop classic  'Heim i Budardal' ('Home to Budardalur).