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I am currently traveling in Iceland and it seems that most campsites do not allow campfires. Are there any campsites in Iceland that allow campfires? If so, how can I find them? Any resource links would be greatly appreciated.

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No.

Any open fire requires a permit. A campsite might operate a communal campfire on special occasions, but guests are not allowed to light their own campfires.

Reference: Icelandic Tourist Board, guidelines for campsites, section 5.7: http://www.ferdamalastofa.is/static/files/upload/files/Tjaldsvaedarit_2006.pdf

Það er stranglega bannað að kveikja eld á opnum svæðum. Leyfi frá lögreglu þarf ef fyrirhugað er að kveikja bálköst / varðeld á svæðinu.

Loosely translated:

It is illegal to light a fire in an open area. Permit from the police is required for lighting a bonfire / campfire in the area.

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