Open for more than 200 years, Xeri Elia (Dry Olive) is touted as Hydra’s oldest tavern. The restaurant is known for its fresh seafood, such as local fish baked in tomato and onion, as well as authentic Greek dishes like gemista (peppers and tomatoes stuffed with wild rice and herbs). Located on its own private square, the tavern has a popular outdoor patio decorated with wine-bottle candleholders, checkered tablecloths, and pine trees strung with white lights. In the evening, the normally quiet space becomes a happening nightlife destination with live guitar and bouzouki music.
Although it’s only minutes away from the harbor, the small square is somewhat hidden—look for the cluster of trees up the hill from the pier.