Vela luka is situated on the island of Korcula which belongs to the group of middle Dalmatian islands. Island has a surface area of 276 km2 and it is the sixth biggest island in the Adriatic. The island is divided from the peninsula Pelješac by a narrow channel and it was of great importance to the maritime powers.

Because of its importance, its masters changed often: the Hellens, the Romans, the Venetians, the British, the Russians and the Italians.