Draugasetrið is located in the small village of Stokkseyri, not far from the coast.

The museum focuses on various ghost stories common throughout south Iceland. Inside, visitors travel between various ghost story exhibits, around 24 in total, complete with an audio guide told in English, German, French, Japanese, Chinese, Russian, and several other languages. Also, inside the museum is another section dedicated to another piece of Icelandic folklore. The Elves Museum explores the country's history and fascination with the mythical creatures.