A Lycian legend explains the source of the name Telmessos as follows: The god Apollo falls in love with the youngest daughter of the King of Phoenicia, Agenor.

Surviving buildings attest to considerable prosperity during late Antiquity, but most were abandoned in the 7th–8th centuries due to the Arab-Byzantine Wars.

[citation needed] In 1934, the city was renamed Fethiye in honor of Captain Fethi Bey [de], one of the first pilots of the Ottoman Air Force, who died (together with First Lieutenant Tayyareci Sadık Bey [tr]) during an airplane crash on 27 February 1914 near Al-Samra, while attempting to complete the first flight from Istanbul to Cairo.

[8] On 3 August 1953, Air France Flight 152, while en route from Rome to Beirut, ditched into the Gulf of Fethiye off Kızılada.

On 14 January 1969, Fethiye was struck by an earthquake with a magnitude of 6.2, which caused no deaths, but there were some injuries and significant damage to buildings.

Some of the historical sites worth visiting are: Kadyanda (Cadyanda) ancient city, Kayaköy - the abandoned Greek village, Afkule, Gemiler and Aya Nikola.

The island of Kızılada in the Gulf of Fethiye, 4 mi (6.4 km) off the city,[16] is a popular stopover for boat tours.

The most common type of public transportation in Fethiye and nearby area is minibus, commonly known in Turkey as dolmuş (dol-moosh) and numerous routes connect Fethiye with Ölüdeniz, Yaniklar, Kargi, Hisaronu, Ovacik, Seydikemer, Karaçulha.

To the north of the city center is the area of Çalış Plajı (Beach), which incorporates the main street of Barış Manço Bulvarı alongside an extensive promenade along the coast, on which a lot of hotels are based.

Approximately 4 km to the south-west and south respectively, lie the towns of Kayaköy and Ölüdeniz, the latter being world-famous for its beach spit and associated Blue Lagoon.

The opportunity for paragliding is available from the mountain of Babadağ in Ölüdeniz, from various extreme sports companies located in the area.