Famous as a centre of art and culture, Knidos was founded in 400 B.C. by Dorian traders. Part of a federation of six neighbouring states, the city was the most prosperous on the west coast of Anatolia. A temple of Apollo, which was the common sanctuary of Hexapolis, was built at Knidos. The city benefited from being located on maritime trade routes.

Ancient Knidos had two harbours; one was the naval base, other was for maritime trade. The harbour entrance was embellished by lion statues. The city was built to a plan drawn by the architect Hippodamos of Miletos, and it had an excellent sewage system. Knidos was also famous as a centre of educational activities. The scientist Eudoxos, an astronomer and mathematician, built an observatory in the city and made observations of Kanopos, which were important for navigation. With the help of Euclid he also designed important mathematical theories. The architect Sostratus, who designed the Pharos lighthouse at Alexandria (one of the Seven Ancient Wonders of the World), was also from Knidos.

Knidians were known for making excellent wine, and for their talent in the arts. The statue of Aphrodite, which stood proudly in her sanctuary here, was crafted by the master sculptor Praxiteles. It was originally commissioned by Kos, but its delivery was refused when those good citizens learned it was a nude representation of the goddess of love. Aphrodite was believed to bring good fortune to seafarers—this nude statue also brought many tourists, so many that Knidians had to add a fence between the columns to protect her from her admirers. The statue has never been found during the excavations; this Aphrodite has disappeared, though some sources say her head is in the wharehouses of the British Museum.