The reputed founders of ancient Gythium were Heracles and Apollo, who frequently appear on its coins or in other legends, and Castor and Pollux: the former of these names may point to the influence of Phoenician traders from Tyre, who, we know, visited the Laconian shores at a very early period. It is thought that Gytheio may have been the center of their purple dye trade because the Laconian Gulf had a plentiful source of murex. In classical times it was a community of Perioeci, politically dependent on Sparta, though doubtless with a municipal life of its own.
In 455 BC, during the First Peloponnesian War, it was burned by the Athenian admiral Tolmides who besieged the city with 50 ships and 4,000 hoplites. It was rebuilt and was most probably, the building ground for the Spartan fleet in the Peloponnesian War. In 407 BC during the Peloponnesian War, Alcibiades landed there and saw the thirty triremes the Spartans were building there. In 370 BC, the Thebans under the command of Epaminondas besieged the city successfully for three days after ravaging Laconia. However it was recaptured by the Spartans three days later.
In 219 BC, Philip V of Macedon tried to capture the city but without success. Under Nabis, Gythium became a major naval arsenal and port. During the Roman-Spartan War, Gythium was captured after a lengthy siege. After the war finished, Gythium was made part of the Union of Free Laconians under Achean protection. Nabis recaptured Gythium three years and the Spartan fleet defeated the Achean fleet outside of Gythium. Gythium was liberated by a Roman fleet under the command of Aulus Atilius Serranus.
Subsequently Gythium formed the most important of the Union of Free Laconians, a group of twenty-four, later eighteen, communities leagued together to maintain their autonomy against Sparta and declared free by Caesar Augustus. The highest officer of the confederacy was the general, who was assisted by a treasurer (rauias), while the chief magistrates of the several communities bore the title of ephors.
In Roman times Gythium remained a major port and it prospered as a member of the Union.Roman Gythium[›] As purple dye was popular in Rome, Gythium exported that as well as porphyry and rose antique marble. Evidence of the ancient Gythium prosperity can be found by the fact that the Romans built an ancient theatre which is well preserved today and is still used occasionally. The ancient theatre, as well as the city's Acropolis (west to the location of the theatre) discovered by the archeologist Dimitris Skias on 1891. Some time in the 4th century AD, Gythium was destroyed. What happened to Gythium is not recorded but it is thought to have been either sacked by Alaric and Visigoths, pillaged by the Slavs or destroyed by the massive earthquake that struck the area in 375 AD.
After the earthquake Gythium was abandoned. It remained a small village throughout the Byzantine and Ottoman times. Its importance grew when Tzannetos Grigorakis built his tower at Cranae and more people came and settled at Gytheio. But during the Greek War of Independence, refugees flooded into Mani and made Gytheio a major town.
The modern Gytheio opened a port in the 1960s. Ferries sail from Gytheio to Kythira almost daily and also to Crete twice a week. It is the See of the Diocese of Gytheion and Oitylo, headed by a Metropolitan bishop of the Orthodox Church of Greece. Gytheio is the largest and most important town in Mani. Most of the ruins of ancient Gythium are now submerged in the Laconian Gulf. Some walls' remains can be seen today on the sandy beach of Valtaki and in the shallow waters, where the well known Dimitrios shipwreck lies stranded. It is also the capital of the municipality of Gytheio.