This mural is by Australian artist Guido Van Helton. He was commissioned to work his magic on this building after the owner saw his painting of an old’s man’s face on a nearby house (image below. The grandfather mural is based on a photo of the grandfather of the woman who owns the house.) The mural is based on a 1961 photo from a play that Guido found in the Museum of Photography. He will paint two more walls before returning home.
The photos in this post are scans of unedited film shots taken by me with a Canon EOS Rebel 2000. Information about the paintings via The Reykjavik Grapevine. You can see more of his work in Iceland here.