The Bakkabrothers go to Reykjavík

An aging man has to come to terms with the fact he can't contribute as much to society as he once did.

"Síðasti bærinn í dalnum" is in the spirit of old folktales, a classic fairy tale about the struggle of good and evil. In the countryside, all the farmers have fled because of pestering trolls. One farmer, however, holds his ground with his family as the grandmother keeps a magic ring that protects the inhabitants from all evil. The trolls try to steal the ring and thus set in motion a series of events where forces of evil, a dwarf who can make himself invisible and an elf queen come to light.

Tells of the years during the allied occupation of Iceland from 1940-1945. While a number of scenes depict daily life in Iceland (a combination of live footage and staged sequences), a substantial part of the film is concerned with military activities in Iceland and abroad, and the political development which lead to the proclamation of the Republic of Iceland in 1944. The film includes archive footage from English, American, German and Norwegian sources and incorporates interviews with people who lived through the era.