The volcano there is continuing to erupt - but to a lesser extent than it did in January and February when it sent lava rushing towards Grindavik.
The Icelandic Met Office says it is possible that the deep magma supply and the lava outflow might have found a balance where it continues to erupt but with reduced power.
Grindavik's population of about 3,800 people were evacuated in November following a series of earthquakes that opened large cracks in the earth between the town and Sýlingarfell, a small mountain to the north and it was evacuated again in January the night before the latest eruption started.
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