The last day of the year is a night of mystique in Iceland. Old sayings says the elves roam around and standing at a crossroads on midnight might be possible to see group of elves. Just be careful not to speak to them as you might lose your mind if you do. Also there are stories of cows speaking in human tongue when the church bells ring on midnight and then  keep silent for the whole year. It is said that cows always speak the truth and are much wiser beings than us humans. Also they are supposed to be great fortunetellers.  Bonfires and firecrackers were lit on New Year's Eve to chase away evil forces. At midnight there is tradition to enter the house from the front door and exit from the back door for good luck. 

Christmas festivities come to an end on January 6, with a special celebration. There is a belief that elves come out and celebrate with people, dancing and singing on thirteenth night from Christmas and offer blessings to the masses.