Melrakkaey was protected in 1971. Melrakkaey is a small island off Grundarfjörður, and the aim of its protection is to preserve the birdlife on the island. Visiting the island is prohibited without permission from the Environment Agency, and all shooting is prohibited within 2 km from the island to protect the birdlife. Melrakkaey is within the protected area of Breiðafjörður, which is protected according to Act No. 54/1995.

The nature reserve covers an area of 7.3 ha.