The municipality was formed in 1998 with the union of the former municipalities of
Eskifjörður,
Neskaupstaður and
Reyðarfjörður. Austurbyggð, Fáskrúðsfjarðarhreppur and Mjóafjarðarhreppur were merged into Fjarðabyggð in 2006, and
Breiðdalshreppur merged in 2018. ==Geography==