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The church of St. Nicholas is at the foot of the hill where the early Byzantine Castle controlling the Souda Bay stands. The church was built in the 11th century and initially was a one-isle church with an arched roof and probably a cupola. Then, in the 13th century, after various modifications, the church became cruciform and in the beginning of the 20th century a one-aisled extension was annexed to it.
The impressive decoration of the church has been preserved to a great extent and what stands out is the depiction of Mother Mary on a throne in the apse of the sanctum. There are fresco murals probably painted by more than one painter, all of whom used intense, luxurious colours.