Named Corcyra in ancient times for Corcyra, mistress of Poseidon. Legend has it their offspring, Phaeax, became the founder of the ancient Phaecian race.
Or, if you prefer, Kerkyra, daughter of Asopos, with whom Zeus fell in love and brought to the island. Their son was called Phaiakas.
Myth also reports that it was in Corfu where Ulysses met the daughter of Alkinoos, Nausica, who nursed him back to health at her father’s palace and then gave him a ship to return to nearby Ithaka. This enraged Poisidon who petrified the ship and which is now an island in the small bay of Palaiokastitsa where Alkinoos palace is said to have been. The wily Ulysses, of course, escaped.
The famed Argonauts were also said to have found refuge at Alkinoos Palace where Jason married Medea after abducting her from the King of Kolhida. Although contemporaries of the Mycenaeans, the Phaeacians had many ties to the culture of southern Italy in Apulla and distinct difference’s from the rest of mainland Greece. This still holds true today.