The foundations of this settlement were laid by the Greeks and Illyrians, and parts of it have survived into the 21st century: the remains of a Roman palace and Roman baths.

It was around these ancient walls that the later village of Polača was formed. During the twentieth century, the settlement expanded along the coast, and its bay became a port. As this location is a safe place for ships and boats of all sizes, from yachts to cargo ships, it is favourite among boaters for mooring and anchoring. Several restaurants in the bay have their own mooring sites, as well. The bay is adorned with the islets of Tajnik, Ovrata, Kobrava and Morachnik. In addition to the ancient remains, there are eight hydro-archaeological sites in the underwater world around Polača.

Nowadays, Polača has about one hundred and forty permanent residents.

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№9 of 9 places in Mljet National Park
№2091 of 2178 places in Croatia
№2 of 2 Historic buildings in Mljet National Park
№176 of 177 Historic buildings in Croatia

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