The earliest record of Sveti Stefan is as the capital city of the Paštrovići community, which became a protectorate of the Republic of Venice in 1423, having been independent since the twelfth century. The Paštrovići accepted Venetian sovereignty because they were fearful of attack from the Turks. They retained considerable autonomy and paid no tribute to Venice, in return for ceasing piracy against Venetian ships.[3]
According to a legend recounted by Stjepan Mitrov Ljubiša, the town fortification was funded after Paštrovići looted Turkish ships moored in front of Jaz during Barbarossa's siege of Kotor in 1539. The town was razed shortly after, during the Fourth Ottoman–Venetian War. After continuous pleas by Paštrovići, the Venetian Republic agreed to rebuild it in the 16th century.[4] In the 15th century, the fortified village was built to defend against the Turks and became a haven for pirates of the Adriatic.[5]
This is the view from Vila Drago:
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