The small chapel was originally part of a monastery, most likely built in the 1500s. The narthex was added later. Monks lived in cells around the church and cultivated the surrounding fields. The monastery continued until the middle of the 19th century. In 1805 the property had orchards, fountains, and trees. Legend tells that the chapel was built by a boat captain in gratitude for Agios Nikolaos saving him from a fierce storm. It was built on the hill that overlooked his position on the sea.