Panormos is located in a historical area, as this is where the ancient Panormus is located. The existence of an ancient city is also confirmed by the discovery of the basilica of Agia Sophia, from the 6th AD. century. In fact, the basilica is considered one of the largest early Christian churches in Greece and the largest in Crete. Also, Panormo is also called Kasteli Mylopotamou or Roumeli Kasteli, as it was built by the Genoese, who occupied Crete in 1206. Traces of the fortress are preserved next to the port.
In the modern history of the region, Panormos was the most important port for the transport of the agricultural products of Mylopotamos. The province produced large quantities of olive oil and carob. You can even today visit the restored carob mill, which is used as a cultural center. After the occupation, when it was also bombed, the small fishing village and port gradually turned into a tourist resort, as the national road was built, while in 1980 the current port of the area was built.