After the lifting of the ban on cultivation of the Lassithi Plateau by the Venetians, they left the land to friend-refugees from the Peloponnese. Peloponnese was occupied by the Turks since the 15th century.
Among the refugees were the nuns Paladia and Theokliti. The first founded the monastery of Panagia Kroustallenia (around 1545). Theokliti, who was the abbot in the monastery of Agia Marina at Kalavrita, founded another monastery dedicated St Pelagia.
The monastery operated only till 1583, unknown why. Today, the temple has been restored. There is an impressive bell made of a bomb.