Amfilochia's central square occupies the point where the compact town opens onto its port at the southeastern end of the Ambracian Gulf. It is not a monumental plaza isolated from daily life. Cafés, local gatherings, fishing boats, road traffic and the waterfront all meet here, making the square the most useful place to understand a town built amphitheatrically around a narrow bay.
The location also explains Amfilochia's long role as a crossroads. Regional tourism authorities describe it as a key junction in western Greece for routes toward Ioannina, Arta, Lefkada and Corfu. The town was known as Karvasaras until 1907, a name derived from the idea of a caravan station. It was liberated from Ottoman rule in 1829, recognized as a community in 1836 and became a municipality in 1946.