Lopud, considered by many as the most beautiful Elaphite island, is located seven nautical miles away from Dubrovnik. It is situated between Koločep and Šipan islands, and it is also known as Isola di Mezzo or Island in the middle. In ancient times, it was named Dalaphodia by the Greeks while the Romans called it Lafota. The island has an area of 4.5 km2 and is home to around 150 inhabitants. The only inhabited place on the island that shares the same name, is situated in a sheltered bay on the northwest side of the island. Meanwhile, the southeast side of the island boasts a stunning, untouched sandy beach called Šunj Bay.
The highest peak of the island, Polacica, stands at 216 m above sea level. The first settlement on the island was situated far from the sea and hidden from view to avoid pirate attacks. However, after security measures were strengthened, the population moved down to the coast and built the town of Lopud as a small urban center. This town exemplifies the layout of the wider Dubrovnik area, with a planned settlement defined in the 15th and 16th centuries.
Lopud has been the seat of the principality since 1457. During its golden age, it had around 4,000 inhabitants, a shipyard, and a fleet of approximately 80 ships, which represented 25% of Dubrovnik’s merchant fleet. Lopud sailors participated in the campaigns of the Spanish rulers Charles V and Philip II to Tunisia, Algeria, Portugal, and England. Nearly seventy captains from Lopud sailed these ships. However, Lopud lost its economic power after the discovery of America, when trade shifted from the Mediterranean to the Atlantic and sailing ships became obsolete. In the 19th century, weaving production flourished on Lopud, employing about fifty looms. The population also engaged in fishing and agriculture during this period.