The capital of Lassithi prefecture since 1904, Agios Nikolaos is a picturesque town in the eastern part of the island built on the northwest side of the peaceful bay of Mirabello. It is named after the charming 7th century Byzantine chapel of St.Nikolas, erected on the spot called "Nissi" during the 7th AD century, with its bell tower, drum and dome. The chapel has a number of well-preserved frescoes of the 19th, 10th and 11th centuries and rewards its visitors with a breathtaking view of the town and bay.

The name Agios Nikolaos means Saint Nicholas who is the patron saint of sailors and of all of Greece. Agios, as it is referred to by all the islanders, retains a traditional, quaint and tranquil fishing town lifestyle which hasn't lost its charm with its busy tourist infrastructure. The small, especially well attended port of Agios Nikolaos, has its own charm, as it is surrounded by the picturesque tile-roofed houses and it is illuminated in the evenings by the lights of the shops and those of the "kaikis", fishing boats moored at the big dock. This is their starting point of their day trips to Spinalonga, Elounda and the picturesque Mirabello Bay.

Agios Nikolaos is accessible from the mainland and the whole of Europe through Nikos Kazantzakis airport in Heraklio and many daily ferry services in Heraklion Port. Two ships directly connect Agios Nikolaos daily with the ports of Piraeus, Sitia and Aegen islands of Milos, Santorini, Karpathos, Kassos, Kos, and Rhodes.