Skiathos took part in wars against the Persians in 478 BC, then later it was occupied by Alexandra the Great and the Romans.

In 1204 the Venetians conquered the island then in 1583 the Turks, at this point the islanders left their town (which was on the site of present-day Skiathos town) and built Kastro in the north of the island. This became the capital of the island from 1540 to 1829. In 1821 the island gained independence and was liberated in 1823. In 1830 the local people left the castle and rebuilt the town in its original position.

The island once had a vital wooden shipbuilding industry and contributed many ships to the War of Greek Independence (1821–1831). Shipbuilding began to decline after the introduction of steamships. The Encyclopædia Britannica Eleventh Edition (1911) stated: “Almost every householder in both islands (Skopelos and Skiathos) is the owner, joint owner or skipper of a sailing ship.” Today the art of building ships and boats in the traditional style is virtually nonexistent and is seen only in the repairing of small wooden vessels.