Hard to miss on Laugavegur — neon, bowling-pin sign, bowling-alley interior — Lebowski Bar is a knowing tribute to the Coen brothers film, complete with rugs that really do tie the room together. The menu offers twenty-one variations of the White Russian. The atmosphere is friendly, the cocktails are cheap by Reykjavik standards, and it is open very late.
Touristy, definitely; but the city has a sense of humour about it, and the upstairs dance floor is one of the easier places to find at 3 am.