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Arkadi is built on the rise of Monodendri. According to archaeologist Xanthoudidis, the name of the village is Byzantine. Immediately after the liberation of Crete, the village received residents from various regions.

After the abduction of General Kreipe, during the Nazi Occupation period, the Nazis executed 28 young men from the village. This is why an impressive monument has been erected at the village and the Municipality pays tribute to the heroes at the annual event organised to commemorate the Battle of Crete; this is honoured by the presence of all local agencies, school pupils and numerous guests; at the end of the event local residents offer participants their warm hospitality.