Panarea (3.4 sq. km.) is one of the most scenic islands in the archipelago and the oldest geologically. The Greeks supposedly called it "Euonimo" because it appears on the left when departing from the port of Lipari.
Though irregular and indefinable in form, rugged and uneven, it boasts stupendous beaches if enchanting beauty enhanced by a limpid blue sea. There are gaseous fumeroles and hot springs in various localities. One of these hot springs (50 deg. C.) is popular with the inhabitants for its curative effects
The attactive well kept homes are grouped in three districts which bear the names of Iditella, S. Pietro and Drauto. Adjacent are a cluster of rocky islets: Basiluzzo, Dattilo, Lisca Bianca, Bottaro, Lisca Nera,Panarelli and Le Formiche, which were originally contiguous. Panarea has been continuously inhabited since Neolithic times, and still contains remnants of an ancient village dating from X1V century B.C. as well as the remains of Roman homes and port constructions.
The most evocative locality, probably the most beautiful in the archipelago, is Cape Milazzese, made up of a small promontory with rugged walls opening to the left and the right forming attractive inlets and a beautiful port called Cala Junco, that forms an enchanting setting at sunset. Panarea, is a popular destination for luxury private yachts and cruisers, a location for films, and Hotel accommodation and amenities are reflected by the prices they demand.