Itanos is one of the most consistently recommended traditional tavernas in Agios Nikolaos, known for freshly caught fish, grilled octopus, and good local wine from the barrel. It sits a short walk back from the harbour, which means it is slightly out of the prime tourist zone and accordingly more relaxed and better value.
The menu is a model of simplicity: whatever came off the fishing boats that morning, a few mezedes, and some solid Cretan salads. Fish is priced by weight; ask what is good on the day rather than ordering from the menu without guidance.