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This is a two-aisled church dedicated to Osios Ioannis and St. Eustathios, near ancient Falassarna. It was the hermitage of Osios Ioannis Xenos during the 11th century and part of it is within a cave. The mural decoration dates to the period between the 11th and the 14th century and tells the life story of Osios Ioannis.