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Unlike other island settlements that have a continental or coastal character, Osor is an ancient city at the crossroads of land and sea routes. The location at the junction between the islands of Losinj and Cres was a condition for the creation of this place, its prosperity and later collapse.
The islands have been inhabited since prehistoric times. Tracks and paths are still recognizable today, testifying to the intensive traffic between the former settlements. A large part of the island's traffic flowed right into Osor. The island road led through the city itself and not, like today, outside the city walls. Osor was a well-known port due to its coastal navigation and the perfectly protected inlets and bays in the surrounding area. The canal (Cavanella, Kavuada), which divides the islands of Losinj and Cres, was built during the reign of the Romans. The city of Osor, as it is known today, is a museum city, as traces of the ancient past can be found everywhere. Bronze Age graves, many Illyrian buildings and huge stone walls are known from prehistoric Osor. Osor took on the form of a real city in the ancient era, and at that time it also reached its largest extent - from the canal to the Bay of Bijar. Osor had an ancient street layout. Remains of ancient floor mosaics were preserved in the Osor cemetery. The three-nave basilica of St. Peter from the 11th century represents the largest Romanesque complex in Osor. This is connected with the spread of Benedictines on the Kvarner islands. The monastery that was here ceased to exist in the 15th century. Near this monastery, in the Bay of Bijar, there is another one. The church of St. Mary was built in this complex in 1414. In 1460, it belonged to the Franciscans of the third order. The Church of St. Mary and the house next to it were built over many years.
Two Glagolitic inscriptions are carved on the stone jamb of the monastery and on the bell tower of the church. One shows the year 1633, and the other shows the year 1732, when the bell tower was restored.