The building at Austurstraeti 22 was constructed in 1801 and served originally as the Governor's House — the residence of the Danish Crown's representative in Iceland, including at various points the legendary Jörgen Jörgensen, the self-proclaimed "Dog-Days King" who briefly declared Iceland an independent republic in 1809. The house has witnessed more of Iceland's history than any other surviving structure in central Reykjavik. Caruso has been inside it for over fifteen years, and the relationship has produced one of the city's most beloved dining institutions.
The restaurant is family-run, and this is not a description but a characterisation. The warmth of Caruso — the reason people return on anniversaries and bring guests who need to be impressed — originates in the care of the family that operates it. Italian cooking is, fundamentally, a family tradition. The best Italian restaurants anywhere in the world replicate the experience of eating in someone's home, with the skill of a professional kitchen. Caruso achieves this with apparent effortlessness.
The menu covers the expected Italian range: appetisers featuring local produce cooked occasionally in Italian style, wood-fired pizzas, handmade pasta, fish and meat mains. What distinguishes each from merely competent is the sourcing — the kitchen integrates Iceland's exceptional seafood and lamb into Italian preparations without apology, and the results reveal how compatible these culinary traditions are when both bring quality to the encounter. The risotto, frequently cited in reviews, demonstrates this fusion at its most confident: creamy, properly rested, built around Arctic seafood that gives the dish a flavour profile unavailable anywhere in Italy.
The garlic bread is not a detail to pass over. The pizza dough, fermented and wood-fired in the traditional manner, produces results that Reykjavik residents treat as a civic treasure. Children's and vegetarian menus ensure the restaurant serves groups of mixed appetite without compromise.