The Hidden Folk of Iceland. They appear to humans only when they chose to do so but appear much the same as any human. They live in the earth behind rock formations and many bad omens may happen upon those that disturb their residences. As such, even the laying down of new roads in Iceland requires consultation with a Huldufólk-expert and alms paid to secure their blessing during construction. It is considered disrespectful to refer to them by their real-name: álfar (elves).