Italy's Smallest Aeolian Island Is A Car-Free Paradise Blending Hidden Coves, Glamour, And Nighttime Bars

Italy's smallest inhabited Aeolian island, Panarea, is just 1.3 square miles of stunning volcano-formed land, located north of Sicily — Italy's sun-drenched Southern gem. With roughly 280 year-round residents and a population that swells in summer, its car-free backstreets are filled with geometric, whitewashed houses, vivid bougainvillea creeping over walls, and a calming, laidback air, with views almost always populated with unruffled ceruleans punctuated by little motor boats, islands and islets jutting like uncut gemstones from a bed of blue gold.

Panarea is exquisitely barefoot. There aren't many big resorts or glitz-trimmed five-star hotels, but you will occasionally see a chic catamaran off the coast, often home to a celebrity or two, looking for untarnished Aeolian hues to act as backdrop for their summer vacation. But what you will find plenty of on Panarea are chic restaurants and bars, some overlooking the harbor from chic terraces. On summer evenings, the island transforms from its typical sleepy self into something of a party island. But not in the traditional sense. Yachts pull close to shore, and the terrace bars fill up with well-heeled partygoers, with events often spilling over into the small hours.

If you are looking for a chic retreat to join the jet-set, then you'll find one of the island's best, perched on a rocky slope just above the port of San Pietro. Hotel Raya is a boutique hotel with 34 rooms and suites, and one of the most popular nightlife spots on Panarea. Rooms can feel pared-back compared to places like Capri, but select one with a sea-view terrace and charming Sicilian interiors, and you'll find that's just part of Panarea's rustic charm.

Arrivals to Panarea touchdown in the island's only port, San Pietro. By day, it feels like a sleepy fishing village where boats pull in with the daily catch destined for local trattorias. But after sundown, San Pietro transforms, with view-laden, cocktail-fueled parties well into the early hours. Hotel Raya remains one of the most iconic, with numerous cliffside terraces, ideal for quaffing cocktails and listening to DJ-curated soundtracks while the Stromboli volcano glows on the horizon. Another option is Banacalii at the Lisca Bianca hotel, perfect for sunset cocktails, elevated by breathtaking views, made all the better by romantic candlelit tables. Down by the marina, Bridge Sushi Bar pairs seafood with a lively, waterside atmosphere, while Bar del Porto acts as a beacon throughout the day, as appropriate a spot for an afternoon coffee as an aperitivo before the night unfolds. 

For daytime recuperation, beachgoers will find only one sandy beach on Panarea, the stunning Zimmari, a curve of golden sands lapped by the Tyrrhenian azure, but it's almost always full in the summer. Another is the paradisiacal Spiaggia di Cala Junco, located directly below Capo Milazzese, with delightful crystal waters haloed by basalt cliff walls. The beach is rocky, but the views and the turquoise water make it more than worthwhile. 

Food on Panarea is a delicious mix of rustic Italian, seafood, and classic Sicilian. For the latter, try Panetteria Rosticceria Gastronomia Da Claudia, which is a rotisserie and bakery serving sweet and savory Sicilian staples, like arancini in ragu and Sicilian cassatina. Hotel Raya is another option, with romantic alfresco dinners on a scenic terrace, each table lit by a lantern.

As Panarea is a small island, there are no airports, but you can easily travel to Sicily's Catania Airport. From there, travel by road for a little over 90 minutes to Milazzo to catch the ferry, which takes a little over two hours once you're aboard. A better option, though, is to travel to Naples and spend a couple of days sampling the exquisite street food and impressive layers of history hiding directly beneath Naples' streets before connecting to Panarea by ferry. 

To make a fuller tour of Italy, start instead in Rome, the city we think is best for kicking off a vacation in Italy, and travel via train (about two hours) to an off-the-beaten-path destination such as Gaeta to experience a coastal city without the crowds. Then, catch the direct train to Naples, which also takes about two hours, before boarding the daily direct ferry to Panarea, which takes anywhere from five to 11.5 hours, depending on the time of departure and the operator. If you're already in Sicily, you can also travel by ferry and hydrofoil from Messina.

From Panarea's small port at San Pietro, you can easily springboard to Lipari, the largest of the Aeolian Islands, and, via ferry connections from there, the rest of the Aeolian Islands. It's also possible to hire small boats with or without a skipper, if you prefer to explore independently. Connect to Lipari to see its bustling streets, towering castle and archaeological museum, Salina for lush vineyards and caper farms, Vulcano for mud baths, steaming fumaroles and view-laden hikes, and to Stromboli to see the black sand beaches and glowing nightly pyrotechnics of the continuously active volcano.