Greek mythology relates that the bay of Palaiokastritsa was where Poseidon and a nymph (Kerkya) were ship wrecked. Poseidon fell in love with Kerkyra (the Greek name for Corfu) who was the daughter of  the river-god Asopos. 

In their ensuing relationship, the nymph and sea god created a race called the Phaeacians, skilled sailors that inhabited Corfu and helped Odysseus in his last stop on his journey back to Ithaka. 

When Odysseus was shipwrecked at Palaiokastritsa,  Nausicaa, undisturbed by his filthy state, takes him to her father’ s palace, with its exquisite gardens that bloom and bear fruit throughout the year, and it is there that King Alcinous, deeply moved to be meeting a hero of Troy, decided to send him home to Ithaca on one of his ships, so that his Odyssey may be ended.

Unfortunately, Poseidon turned the ship to stone in his anger at Odysseus's men blinding his son, the Cyclops.

Very  importantly don't miss a visit to the charming 12th century monastery of Theotokos.

At the northernmost point of the bay  the monastery is on  top of the hill surrounded by olive trees and looking down onto the village of Lakones and the sea.

Paleokastritsa’s beaches are famous for their scenery and crystal waters and have this  become somewhat touristy