Milna was founded in the 17th century and developed around the Cerinić kaštil fortress. This noble family from Nerežišća chose the Milna inlet to build their fort and a church. During this period the settlement of Milna grew around the church and in 1783 a new baroque parish church was built – Our Lady of Annunciation. Another unique example of cultural heritage are the remains of the Gothic church in the Osibova bay. An interesting fact about Milna, during the Napoleon wars, in 1820, the Russian fleet installed its naval base here.
Milna is naturally oriented toward the sea. It is known for its shipowners and sea captains whose vessels sailed all over the Mediterranean and faraway oceans. Mid 19th century Milna shipyards produced no less then 16 sailboats. The prototype of the famous Dalmatian-style boat bracera was built in Milna of all places. The name bracera (brah-tze-rah) comes from Brazza, the Italian name for Brač.