Agios Nikolaos is an extremely popular spot. Numerous restaurants, bars, and night clubs give the place its characteristic cosmopolitan atmosphere. A beautiful lake dominates the place. Legend has it that the goddesses Athena and Artemis used to bathe in its waters which are connected with the volcano in Santorini.

A narrow channel of water connects the lake with the sea, while an imposing backdrop of red rock and trees adds to the natural beauty of the scenery. Near the lake, an open theater hosts artistic and cultural events throughout the summer.