There is few written history and rumors about a Byzantine settlement located between Alipa & Saint Spyridon bays, about 10 decades ago. The date of establishment is not known.

This Byzantine settlement was quite big and its community was prosperous. At that time the area was called Paleopoli and used to have four small churches, from which the ruins of the two still exist today.

The name of Paleokastritsa(old castle) indicates the existence of an old Castle which was probably built on the hillside where the Monastery of Theotokos stands.

The main scenario is that the name was firstly given to the Monastery and after to the entire area.

This is probably the reason why they named the area Paleokastritsa. The name was given to the municipality of Paleokastritsa lately and covers all the around area.

Every second week of July, a three days festival is take place with plenty of food, music, and wine. The local dance groups in traditional dress and a firework show makes that festival a must seen.

On the 15th of August is the national celebration of the Virgin Mary, with markets and local singing bands, and wonderful food and drink.