Moudros Bay is one of the safest natural harbours in Greece and the eastern Mediterranean. The size of the bay, its position in the centre of the island, its multifarious coasts, the security and protection afforded by the winds and the nearly perfect state of its environment, all provide for an ecosystem of considerable aesthetic and ecological value, while it is also  a remarkable biotope with an abundant fish fauna. The importance of the Moudros Bay was noted on many occasions by the island’s conquerors and numerous travellers.

The area of Moudros has been inhabited since prehistoric times. Building remains and tools dating from the Early Bronze Age to the Mycenaean period (3200 BC - 12th century BC.) have been discovered in the islet of Koukonisi. The first reference to the village dates back to a 14th century document of the monastery of Great Lavra of Mount Athos (1355) and two golden bulls of the emperor John V Palaeologus "in relation to Moudros of Lemnos" (1362 and 1380). The later village began to develop in the 19th century. Refugees from Asia Minor settled in Moudros in the interwar period and it was the first exporting port of Lemnos.