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Hundafoss is one of a series of waterfalls leading up to the lovely Svartifoss in Skaftafell National Park. I read somewhere that the falls got its name ("hundur" means dog in Icelandic) because dogs have been swept over the falls during flood. I've also heard that a dog gave its life trying to rescue someone here. I'm sure there's a saga for it.
Since this waterfall was signposted along the Svartifoss trail, we had no trouble identifying it.
Directions: This falls shares the same trailhead as that of Svartifoss. See that page for driving directions.