FH Hafnarfjörður are a club whose football section came into being almost by accident - as the result of failed negotiations to form a joint team with a local rival. Fimleikafélag Hafnarfjarðar, or the Hafnarfjörður Gymnastics Club, was founded on 15 October 1929, initially focused on gymnastics and soon also on handball, which remained the club's flagship discipline for decades. It was only after 1939, when talks between FH and the club Haukar over forming a combined football team for the town broke down, that FH established its own independent football department.
For most of the twentieth century, FH remained a club of modest league ambitions, moving through a series of promotions and relegations - in 1975 it was promoted to the top division for the first time, only to be relegated bottom of the table in 1981. FH's true era of dominance began only in the first decade of the twenty-first century, driven largely by coach Ólafur Jóhannesson, under whom the club won three Icelandic championships, finished runners-up twice, and lifted the Icelandic Cup in 2007, beating Fjölnir 2-1 in the final. FH's first league title came in 2004, earning the club a debut appearance in UEFA Champions League qualifying in the 2005/06 season, where it went out over two legs to Azerbaijan's Neftçi Baku. In subsequent years FH became a regular in European competition, recording, among other results, a win over Scotland's Dunfermline Athletic thanks to a goal scored in stoppage time by Tommy Nielsen.
An intriguing part of the club's identity is the friendly bond between FH supporters and fans of Scotland's St Johnstone FC, expressed through mutual visits to each other's matches and regular social gatherings - a rare example of an international fan friendship not rooted in any historical connection between the clubs. Known as the FH-ingar, the team play their home matches at Kaplakriki Stadium in Hafnarfjörður, a port town on Iceland's southwest coast, with a capacity of six and a half thousand spectators.