Since the last decade, the majority of the population has been moved to the village's seaside settlement of Makry Gialos, some six kilometers to the south.

The village's previous name was Gras or Greas mentioned by Piero Castrofilaca, the Venetian accountant of Crete in 1583.

Further north from Agios Stefanos village they are ruins from Venetian built terraces for vineyards, olive groves and other crops.

Sir Arthur Evans passed from the area in 1898 and mentioned the standing walls from a fortress in his diary.

In Agios Stefanos was also the birthplace of Fundalides son Emmanuel, also an MP in late 19th century.