In "101 Reykjavik," 30-year-old Hlynur is stuck in a rut, living off unemployment benefits while cohabiting with his mother. His days are filled with excessive drinking, internet browsing, and watching adult films, despite the interest of a potential girlfriend. When his mother’s Spanish flamenco instructor, Lola, moves in for the holidays, Hlynur discovers her sexual orientation and ends up in a surprising encounter with her on New Year's Eve. As he navigates the complexities of their unconventional living arrangement, Hlynur must confront his own selfishness and figure out where he truly belongs in life.