The Panagia district has the best concentration of tavernas in Kavala, tucked into the lanes around and below the castle. Most serve the standard northern Aegean repertoire: grilled or fried fish, octopus in wine, mussels, and seafood meze. The setting — cobbled lanes, Ottoman stonework, a view of the sea — is significantly better than anything in the lower town.
Several of the Panagia tavernas operate year-round, which is useful since the harbour-front places tend to close or cut hours in winter. Look for the smaller family-run spots rather than the places on the main lane with English menus and aggressively placed hosts; those tend to be aimed at day-trippers from Thassos.