After releasing 5 albums with Nýdönsk, he produced an album with the electronic rock group Bubbleflies.
He then branched out into acting in the National and Municipal theatres, playing roles in West Side Story, Jesus Christ Superstar (Pontius Pilate), and Stone Free. Film directors Arni and Kinski approached him to play a lead role in their short film Nautn. During production, Daníel founded GusGus in 1995 with Kinski.
Daníel took a break from GusGus in the year 2000 to write music for both TV and documentary films and compose music for the Iceland Dance Company.
His first solo album, Swallowed a Star, was released by One Little Indian in Europe (2005) and North America (2006).
Daníel formed a musical pet project with heavy metal band Mínus front man Krummi Björgvinsson, called Esja, and released a self-titled album in 2008.
Daníel rejoined GusGus with the releases of Forever in 2007, 24/7 (2009), Arabian Horse (2011), and Mexico (2014), touring extensively in Europe. Daníel released his second solo album, The Drift, in 2011.
