The name Ayia Napa comes from the monastery of the same name located in the center of the village, founded under the Venetians. The word "Aya" (Agia) is translated from the Greek "holy", the word "napa" is archaic and means "tree alley". In ancient times, the area surrounding the city was covered with dense forest.

In the very center of the village is the ancient monastery of Ayia Napa. The monastery, and after it the area, got its name thanks to the icon "Panagia Napa" (it can be translated as "Holy Mother of God (from) the forest"), found in the forest. According to one version, in the cave where the church is now located, the hunter found the miraculous icon of the Most Holy Theotokos.

The hunter's dog was the first to notice the luminous icon and, stopping in front of it, began barking persistently, attracting the owner's attention. Having learned about the discovery of the icon, numerous believers began to visit this place in the cave. In all likelihood, the icon was placed in a cave during the period of iconoclasm (7th-8th century AD) and thanks to this it was saved.

In the XIV century, the cave was built on and thus the monastery church was founded. Over time, the name of the icon began to be called Ayia Napa.

The cave, hiding place and spring testify to the existence of a Christian community since Byzantine times. The name Ayia Napa is mentioned for the first time in 1366, but, according to available data, it was applied to the area earlier. The monastery in its present form was founded in the 15th century during the Venetian rule in Cyprus.

Ayia Napa is a Mediterranean resort town on the southeast coast of Cyprus, famous for its beaches. The lively taverns of Ayia Napa Bay offer freshly prepared seafood, while Pantahou Beach adjoining the bay is famous for its golden sand.