This study performs a reanalysis of the seismicity recorded during the 1996 Gjálp eruption that occurred at NW Vatnajökull, Iceland. The seismicity was recorded by the temporary HOTSPOT network consisting of 30 three-component broadband stations. In total 301 events were identified between 29 September and 12 October and their phases were manually picked. A velocity model was estimated from P-phase travel times by using VELEST. Events were first located using the algorithm NONLINLOC in order to obtain absolute locations. Precise relative locations were obtained with HYPODD by utilizing catalog and cross-correlation differential travel times. Results show that events clustered first along the SW rim of the Bárðarbunga caldera and later along the Gjálp fissure, with most hypocentral depths located between 3 and 8 km. Waveforms of the 10 largest events that followed the Bárðarbunga earthquake were inverted in order to obtain moment tensors. For all events we found that the deviatoric moment tensor fits the data better than pure double-couple or full moment tensor solutions. Events along the Bárðarbunga caldera exhibited reverse focal mechanisms, while those at the Gjálp fissure exhibited mostly strike-slip faulting. Seismic velocity variations calculated using ambient noise interferometry, point to the possibility that a small subglacial eruption occurred at Bárðarbunga before the main earthquake. This removed melt from the magma chamber causing its roof to collapse, and also resulted in the lateral migration of magma towards the Gjálp fissure. The 2014–2015 Bárðarbunga–Holuhraun eruption shares common characteristics with the 1996 Gjálp eruption, although the size of the latter was much smaller.