The rich archeological findings prove that Psara was inhabited already from the Early Bronze Age (1600-1100 BC), due to their strategic location in the heart of the Aegean. From the fall of Constantinople until the 18th century, Psara received many settlers from Evia and Thessaly, as well as repeated pirate raids. At that time, the inhabitants of the island had gathered in Paleokastro.
Since the middle of the 18th century the island has experienced relative prosperity mainly thanks to the construction of ships that helped decisively in the outcome of the Struggle of 1821. When the Revolution broke out Psara together with Hydra and Spetses became a significant naval force. The island was then at its peak with about 30,000 inhabitants.
On June 21, 1824, the Turks annihilated the population, looted houses and looted churches. From the catastrophic fury of the Turks, only the church of Agios Nikolaos remained standing on the pyramidal rock of Psara.
Those residents who managed to leave, settled in Chios, Mytilene, Monemvasia, Syros and Eretria in Evia. The island was liberated by the Greek fleet in October 1912.
Today the approximately 450 inhabitants are gathered in a settlement with low houses that spreads amphitheatrically around and above the port, with the blue church of Agios Nikolaos standing on the hill. In the 1970s the island was revived as part of a program for the "barren areas of Greece" and in 1984 it was declared a Municipality.
Tourism exists on the island mainly in summer, both from Greece and abroad. Guests are served by rooms to let and several taverns.
There is a post office, a supermarket. rural clinic as well as banking support.
Walk to the house of the legendary arsonist Konstantinos Kanaris (1793-1877), who later served as Admiral, Minister of Shipping and Prime Minister of Greece.