Kirkjubæjarklaustur, usually shortened to Klaustur, is a small Ring Road village that works better than its size suggests. The name points back to a medieval convent, but the appeal now is the immediate landscape: waterfall, basalt pavement, cliffs, mossy lava, and the long empty run between Vik and Skaftafell.
You do need a car to make the most of it. The village itself has Systrafoss, Systrastapi, and Kirkjugólf close by; a few minutes farther west, Fjaðrárgljúfur is one of South Iceland's most dramatic short stops.
Klaustur is not a town to linger in for cafes and shopping. It is a useful, scenic base in a part of Iceland where the distances suddenly get big and the lava fields start to feel serious.