PALEOKASTRÍTSA , a small village surrounded by dramatic hills and cliffs, has been identified as the Homeric city of Scheria, where Odysseus was washed ashore and escorted by Nausicaa to the palace of her father Alcinous, king of the Phaeacians. It's a stunning site, as you would expect, though one that's long been engulfed by tourism. The focal point of the village is the car park on the seafront, which backs onto the largest and least attractive of three beaches , home to sea taxis and kaïkia. The second beach, to the right and signed by flags for Mike's Ski Club, is stony with clear water, and the best of the three is a small unspoiled strand reached along the path by the Astakos Taverna . Protected by cliffs, it's undeveloped apart from the German-run Korfu-Diving Centre (tel 06630/41 604) at the end of the cove. From the beach in front of the main car park, you can get a boat trip to some nearby seawater caves, known as the "blue grottoes" (?5.85 for a half-hour trip, ?8.80 for drop-off and later pick-up), a trip worth taking for the spectacular coastal views. Boats also serve as a taxi service to three neighbouring beaches, Áyia Triánda, Platákia and Alípa, which all have snack bars.

On the rocky bluff above the village, the Theotókou monastery (7am-1pm & 3-8pm; free, although donations invited) is believed to have been established in the thirteenth century. There's also a museum, resplendent with icons, jewelled bibles and other impedimenta of Greek Orthodox ritual, though the highlight is the gardens, with spectacular coastal views. Paleokastrítsa's ruined castle, the Angelókastro , is around 6km up the coast; only approachable by path from the hamlet of Kríni, it has stunning, almost circular views of the surrounding sea and land. For a drink or snack with tremendous views, it's worth stopping at either the Bella Vista or Golden Fox tavernas on the way up, between Lákones and Makrádhes.

Unfortunately, perhaps owing to the pressure of commerce in such a small space, there's a rather mercenary air about tourism here. Accommodation is at a premium, and you may be expected to commit yourself for three to seven days in some places. A good hotel is the family-run Odysseus (tel 06630/41 209, fax 41 342; ?59-72), on the road into town, while the nearby modern Akrotiri Beach (tel 06630/41 237, fax 41 277, belvenht@hol.gr ; ?73 and upwards) is friendly and unpretentious. There are good-value rooms for rent above Alípa beach on the road down into Paleokastrítsa: try at the Dolphin Snackbar (tel 06630/41 035; ?43-58), the Green House (tel 06630/41 311; ?34-42) or Michalas tourist bureau (tel 06630/41 113, fax 41 298, michalastravel@ker.forthnet.gr ). Above the village, past Nikos' Bikes, the friendly Korina family also have rooms (tel 06630/44 064; ?34-42). Paleokastritsa Camping (tel 06630/41 204, fax 41 104) is just off the main road into town, a ten-minute walk from the centre.

There isn't a huge choice of restaurants in the centre of Paleokastrítsa. The Astakos Taverna and Corner Grill are two traditional places, while Il Pirata offers a variety of Italian and Greek dishes, including local fish and seafood, and the seafront Smurfs has a good seafood menu despite the name. Also recommended are the very smart St Georges on the Rock , and the shady Calm , which has internet facilities. Nightlife hangouts include the restaurant-bars in the centre, and those straggling up the hill towards Lákones. By the Lákones turning is Paleokastrítsa's one nightclub, The Paleo Club , a small disco-bar with a garden.