The name of the village seems to have come from the many churches and monasteries located in or near the village, which are dedicated to the Virgin Mary. The area honours the Virgin Mary, what testifies the fact that all the churches in the village are dedicated to her. The first president of the Republic of Cyprus, Archbishop Makarios III, was born in Panagia in 1913. In official maps and other records, the village is listed as Pano Panagia. In earlier times, there was another (lower) village also called (Kato) Panagia, which was destroyed. Another source, from Nearchos Clerides, reports that the old settlement of Panagia was replaced by a newer one when it was destroyed by the landslides. The newer settlement was built higher than the old one, which is why it also took the name "Pano". Finally, Panagia is the 2nd highest village in the Paphos district.