Archaeological finds indicate that the Ionians settled on Mykonos in the early part of the 11th century BC. More recent discoveries have uncovered remnants from the Neolithic Kares tribe dating back to as far as 3000 BC.

In Greek mythology Mykonos was the location of the battle between Zeus and the Gigantes and the island was named in honor of Apollo's grandson Mykons. During these ancient times, Mykonos, due to its proximity to the then highly populated island of Delos (situated about 2km away), became very important as a supply island and possibly as a getaway location for Delian citizens.

Today, Mykonos is a very cosmopolitan island, made famous the last few decades by the international jet set visitors that spend their holidays on the island. Many Greek and international celebrities have summer residences in Mykonos and can often be seen walking the charming white-washed walls or having dinner at a small street-side table of a local taverna. The island is Greece's playground and one of the top holiday destinations in the world. Some people think you have not really seen what Greece has to offer until you visit Mykonos. The island is definitely one of the most upscale areas of Greece, and its real estate is very expensive. The popularity of the island has given rise to a wave of real estate development (private homes/villas and hotels) and concerns have been expressed that the island is gradually losing its character. The good thing is that (by law) every new building has to abide by the rules of the cycladic architectural style.