Baltasar Kormákur's 101 Reykjavik is a wry comic drama about the day-to-day life of feckless Hlynur (Hilmir Snær Guðnason), a 28-year-old professional slacker who still lives with his mother, sleeping in his childhood bedroom and living off state benefits. His routine consists of watching porn or sleeping all day; at night he goes out drinking with friends. He doesn't feel the urge to venture out of his postal district, 101 Reykjavik, and seems happy to maintain his adolescent lifestyle indefinitely.
Hlynur's on/off relationship with Hófí (þrúður Vilhjálmsdóttir), seems doomed in spite of her persistence and his disinclination to 'settle down' is even more obvious during a soporific Christmas dinner - the 'highlight' of which is watching a video of the previous year's equally tedious celebration. He fantasises about shocking people out of their cosy domestic lives.
However, Hlynur is roused from his dreamlike state when his mother's friend Lola (Victoria Abril), a vivacious Spanish flamenco dancer, comes to stay. Left alone together on a boozy New Year's Eve, Lola and Hlynur end up having crazy, rampant sex. But confusion follows when Lola announces that she's pregnant and the situation becomes more complicated when Hlynur's mother reveals that she's a lesbian and that Lola is her lover.
Hlynur seems to accept his mother's sexuality, but reacts badly to the idea that he's been used as a sperm donor. He becomes petulant and feels usurped by the unborn baby. Hlynur's life has changed, but can he adapt to the new circumstances?
The contrast of sweeping landscapes and wintry urban environments are used to reflect Hlynur's changing moods and the score, a collaboration between Damon Albarn and former-Sugarcubes member Einar Benediktsson, reworks The Kinks classic Lola numerous times. The underlying humour and high quality acting, particularly from Gušnason, Abril and Hanna Marķa Karlsdóttir as Hlynur's shy mother, turn a darkly comic story into a warm and ultimately uplifting tale.