Career
He spent the majority of his playing career with Fylkir, making more than 150 league appearances for the club Ólafur has also assisted Valur and had spells in Scotland and Norway with East Fife and Molde FK respectively. Ólafur represented Iceland at youth level in three different age groups: under-17, under-19 and under-21.
He made his senior international debut on 15 August 2001, coming on as a substitute for Auðun Helgason in the 1–1 draw with Poland.