On 5 November 1914, the Ottomans entered the conflict on the side of the Central Powers, prompting Britain to void the Cyprus Convention and annex the island as the two states were now at war.

A number of security measures including telegraph and newspaper censorship, and martial law were introduced although Cyprus remained relatively isolated from the nearby theaters of operations.

As it did not possess harbors big enough to accommodate large warships, local authorities shifted their focus to supplying the fighting fronts in its periphery with food as well as housing those wounded in actions, prisoners of war as well as refugees.

A total of 217 Ottoman POWs died in detention, a number were killed while attempting to escape from the camp, while the majority fell victim to poor living conditions.

In 1946, Karaolos became part of the system of Cyprus internment camps intended to prevent Jewish refugees from settling in Mandatory Palestine, with 30,000 being housed in the wider Famagusta region.