Once upon a time there were a pair of trolls living in Skagafjörður. They were night trolls, the kind who turn to stone when exposed to sunlight, and therefore they only vent out at night. They had a huge cow which provided them with milk. The cow came into season, and since the nearest bull was on the other side of the fjord, they had a long way to take the cow. At sunset they started wading across the fjord, the old man pulling the stubborn cow behind him, and his wife pushing after it. The going was slower than they had expected, and at dawn they still had some way to go. When the sun’s rays struck them, all three were turned to stone and became the island of Drangey, and two pillars of rock at either end of the island, after which it was named. (Drangey means "Island of the rock pillars"). The pillars were given the names Kerlingin (the old woman) and Karlinn (the old man). Karlinn collapsed into the sea in the 18th century, but Kerlingin is still standing.
The most known troll in Iceland is Gryla. Gryla is an evil troll that has been married 3 times, her husband is called Leppaludi and described as a wimp. The legend says that before Christmas, she went out and took all the naughty kids, put them in her bag and carried them home to her dark and cold cave. There she boiled them in a big pot before she ate them! Her sons are the Yule Lads. Even though they are sons of this horrible troll, they love children, and sneak out to the kids before Christmas to treat them to something nice. The kids put their shoe on their window sill in the evening, if the kids have been nice they get some treat, a sweet or a toy. If they have been naughty they get a reminder from the Yule Lads, a raw potato. 13 nights before Christmas the first one arrive, then the next one until the last one arrive on Christmas eve.