The name Ayia Napa is derived from aVenetian-eramonasteryof the same name, located in the center of the town, next to the square which today is theclubbingcenter. The word "Ayia" (Agia) means "holy" in Greek. The word 'Napa' is archaic and it means "wooded - valley". In ancient times the area surrounding the town was covered with thick forest.
According to local legend, the now renowned original icon was accidentally discovered by a hunter in hot pursuit of his prey. Upon discovery, the icon of Virgin Mary was called Virgin Mary of Napa, eventually shortened and now know as Ayia Napa. The present monastery, built in 1500, was built around the cave, in honour of the Virgin Mary of Ayia Napa. According to local tradition, until 1790 no-one lived within close vicinity of Ayia Napa. The first inhabitants who actually appeared and settled were twenty men from Salonica, Greece, and so began the village of Ayia Napa.