The smallest of the Ionian Islands. Greek myth has it that Poseidon created this island by striking Corfu with his trident, so that he and wife Amfitrite could have some peace and quiet.

Although possibly inhabited from prehistoric times, the Phoenecians are traditionally held to have been the first settlers on Paxi. The name is believed to be derived from Pax which meant slate in their language.

The Romans ruled the island from the 2nd century BC, and during the Byzantine time and Middle ages it was constantly attacked by pirates. After various rulers and Crusaders had passed Paxi, the island was taken by the Venetians in the beginning of the 16th century.

At the end of the 18th century, the island belonged to the Napolean army, and for a while, it belonged to the Ionian Union. During most of the 19th century Paxi was a British protectorate. The war of Independence had broken out in 1821 and in 1864 Paxi was liberated.