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Sitting on the balcony of my hotel, perched high on the rim of a huge volcanic crater, I’m perfectly situated to take in the captivating panorama of the craggy, crescent-shaped cliff, which plunges 984 feet to meet the sapphire-blue waters of the Aegean.

The orange sphere of the sun is sinking–slowly at first, then with surprising speed–into the sea.

Even for a connoisseur of views, it doesn’t get any better than this.

Looking out over the caldera (the basin formed by the sunken crater) at the placid waters, watching a ferry skim the surface on its way to the port, the becalmed and mesmerized visitor will be hard-pressed to imagine Santorini’s convulsive history.

The southernmost of the Cyclades islands–southeast of the Greek mainland and about 140 miles from Athens–Santorini was created and shattered by successive volcanic eruptions and earthquakes. As recently as 1956, an earthquake leveled the village of Oia. The last major volcanic eruption, in 1450 B.C., wiped out the center of the island, one of the major outposts of Minoan civilization, giving rise to the myth of the lost city of Atlantis.

But it left behind the gift of the spectacular scenery that has enchanted so many, from the ancient poets to the hordes of contemporary tourists who descend upon the island during the summer.

Visitors generally flock to the villages of Fira and Oia, both of which hug the caldera. Once a bohemian community, Oia, which was rebuilt after the 1956 earthquake, is considered the fancier of the two. Fira was livelier during our visit. But both feature warrens of barrel-vaulted, white plaster buildings sporting bright blue shutters and doors that line narrow streets cobbled with black lava rock. Both are jammed with tourist shops, restaurants and clubs.

So many Greek Orthodox churches dot towns and countryside that it seems there must be one per family. Their blue domes topped with white crosses are favored postcard fodder.

Santorini is, as a transplanted Athenian affectionately told us, “a love island.” Couples staying in hotels that, like mine, cantilever over the cliff, might be content to spend their entire vacation there. A dip in the pool, a drink on the balcony, a nap in the cavelike room, a sunset and thou.

But that would mean missing what else Santorini has to offer. To get a sense of the island and its history, rent a car and go for a drive.

Both the high road along the caldera and low road along the open sea offer views of the hilly countryside, where vineyards thrive in the nutrient-rich volcanic soil.

You might not recognize them at first: In order to protect the grapes from the gusty Santorini winds, the vines are trained in wreath shapes close to the ground.

Trees are few, but wildflowers are many. Thanks to the volcano, there are some dramatic vistas, such as Red Beach, where sheer red striated cliffs are the backdrop for the red volcanic-pebble beach, and those that feature black sand. (The island isn’t otherwise known for great beaches.)

Akrotiri, which wasn’t open on my visit, is said to be a fascinating archeological site, a Minoan Pompeii. The village was recovered from layers of volcanic ash that had kept it hidden until 1860.

Ancient Thera–a Greek, Roman and Byzantine city–sits high on a promontory.

The older population seems to live in a time warp. Wizened women in widow’s weeds share the sidewalk with backpackers in midriff-baring tops and shorts. More than once, an old man on a donkey rode past our bright yellow auto.

You can go from Fira, with its espressos and Internet cafes, to Megalohori, a village that looks almost as it did in the 19th Century. It was once a bustling town, home to wealthy vineyard owners. These families exported vin santo, a sweet wine used for communion, to Russia. But the 1917 revolution repressed organized religion in Russia and put an end to prosperity in Megalohori. An earthquake in 1922 was the coup de grace. Families decamped, and it became a ghost town.

The tide is turning, however. A luxury hotel has opened there, and a plucky Athenian developer is lovingly renovating five old mansions into rentable villas. A pair of adventurous restaurateurs had opened Marmita on the square just a few days before our visit. This smashing restaurant features creative interpretations of traditional Greek cuisine.

As the ancient Greek philosopher Heraclitus said, all is flux. The island will continue to change. But until such time as the Santorini volcano blows its top again, we who visit this bewitching place will always (with apologies to Rick Blaine in “Casablanca”) have the caldera.

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IF YOU GO

GETTING THERE

Plan your trip to Santorini to avoid July and August, when the island is overrun by tourists. June, September and October are preferable. From Athens, you can take an auto ferry, which takes 9 to 10 hours; a catamaran, which takes about three hours; or fly (about $140), which takes about 45 minutes.

WHERE TO EAT

Options run the gamut from traditional taverna cuisine to continental. Be sure to take the winding road from Oia down to Ammoudi, a little cove where al fresco cafes serve seafood practically right off fishermen’s boats. Marmita is also a good bet. Local products include white eggplant, large, juicy capers and wines.

WHERE TO STAY

Great caldera views can be had at Astra and Iliovasilema (my hotel). Both are the typical cave houses carved into the rock. For those who are willing to spend more for high-style decor and a private Jacuzzi or pool, the Astra is for you.

Rates at the Iliovasilema range from $130 to $551, depending on season and size of villa. At the Astra, it’s $175-$782. www.astra.gr; www.iliovasilema.gr

INFORMATION

Santorini, www.travel-to-santorini.com

Greek National Tourist Organization, www.gnto.gr; 212-421-5777. Also, www.greektourism.com.

–C.F.