Finally the name became Panarea. It has been inhabited since the IIIth millennium B.C., probably thanks to its favourable position and its greenish nature. 23 oval-shaped huts indicate an organised community some of them enclosed, others partially paved, and almost all with grindstones and stone mortars.
Mycenian ceramics of Aegean origin have been found, indicating the existing trade links at that period. At Capo Milazzese point a prehistoric Bronze age village has been dug out (dated to the period from XVth to XIIth century B.C.). Archeologically Basiluzzo is also interesting; important evidence of Roman constructions has been found there. Until the Roman period it was always inhabited, then the community underwent the Aeolian historical setbacks, with the consequent destructions. From the Vth to IVth century A.D., Arab-Turkish piracy prevented further island development, which remained almost uninhabited.
The first people to go back to Panarea were some Liparori peasants to cultivate its land, but it was prohibited to women, children and old people to stay there. Around the end of ‘600 the permanent inhabitants, who were around a hundred in number, produced wheat, vegetables, and fruit that they also traded in Lipari. Nevertheless, because of the barbaric raids, the island had always few inhabitants.