Tórshavn ( ; literally, "Thor's harbour"; ) is the capital and largest city of the Faroe Islands. Tórshavn is in the southern part on the east coast of Streymoy. To the northwest of the city lies the mountain Húsareyn, and to the southwest, the Kirkjubøreyn. The town proper has a population of 13,000 (2008), and the greater urban area a population of 19,000.
The Vikings established their parliament on the Tinganes peninsula in AD 850. Tórshavn thus became the capital of the Faroe Islands and has remained so ever since. All through the Middle Ages the narrow peninsula jutting out into the sea made up the main part of Tórshavn. Early on, Tórshavn became the centre of the islands' trade monopoly, thereby being the only legal place for the islanders to sell and buy goods. In 1856, the trade monopoly was abolished and the islands were left open to free trade.