Margariti was founded around 1430 by the Venetians and its first residents were Christians though it was settled by Albanians later. After the fall of the Byzantine Empire , the residents were islamized .

In February 1913, Margariti was taken by the Greek army and joined Greece. During that period all village elders of the region gathered and declared that they would resist the incorporation of the area into Greece. At that time the town had a mixed population of Greeks and Cham Albanians until the final expulsion as a result of the Cham collaboration with the Nazi occupation forces.

Almost all Cham Albanian monuments of Margariti were destroyed during World War II.Population movements to the town that occurred from the middle of the 19th century weakened the Muslim elite and led to the gradual Hellenization of former Albanian-majority towns in the area such as Margariti in the 1920s.

During the interwar period, Margariti was among the important towns of the Cham Albanian community located in the coastal region of the Greek part of Chameria and a centre of the Albanian speaking area.