The area where the church now stands was once home to a village called "To Horkoui" during the Frankish occupation. The village was inhabited by several shepherds who suffered a devastating animal disease that decimated their herds. In desperation, the villagers prayed to Panagia (Virgin Mary) for help and promised to build a larger church in her honour if she would heal their animals.
Panagia answered their prayers and the herds quickly recovered. What happens after this is contentious.
The first belief is that the villagers of Horkoui then began construction on a larger church, using water from a nearby spring. However, their efforts were thwarted when the building was mysteriously torn down every night. This continued until the villagers realized that Panagia was asking for something more than a simple temple. They replaced the water with goat's milk and used it to ferment the clay used in the construction. When they attempted to add water again, the stones would not stick together. Thus, the church was completed the church entirely with milk.[2][3][7]
The second belief is that the shepherds of the area had so much milk after the miracle that they fermented the clay with milk instead of water in order to bind the stones of the church together. However, when attempts to switch to water were made at some point, the stones did not stick to each other, which was interpreted by the villagers that the will of Panagia was that her temple be built with milk.[8]
From then until this day, Panagia Galokstisti is considered a miracle worker, and many people from Cyprus resort there in the hope that Panagia would aid them in overcoming their problems of breastfeeding and lack of breast milk.[2] There are miracles narrated in the village. One of them is about a family from Potamos tou Kampos. According to the narrative, the woman had no milk to nurse her child, so her and the child mounted their donkey and came to Church Panagia Galoktistis. After praying, the lady immediately began to feel milk flow from the woman's breasts.
An icon of Panagia Galoktistis is located in the church of Saints Constantine and Helen, in the center of the village, for security reasons.[2][8] This icon was significant as Christians used to spend the whole night praying with the icon of the Virgin Mary in Panagia Galoktistis, however one night whilst they were prayed, they fell asleep and discovered when they woke up that the icon of Virgin Mary was no longer there. It was worried that Turkish people might have stolen it. However, when they returned to the church, the icon was there, filled with water, surrounded by holy flowers, and with candles still burning. For safety reasons, the icon was subsequently transferred to the church of Saints Constantine and Helen, located in the center of their village.[9] People go there to pray when they are in need of help from God and Panagia.[3]
The church still stands today, and is a popular tourist attraction and place of worship for not only Greek Cypriots but Turkish Cypriots in the Kato Pyrgos area. The church has notably been accepted and used by Turkish Cypriots despite the conflicts between Turkey and Cyprus, even after Turkey's invasion of Cyprus. Younger Turkish Cypriot people also go to Church Panagia Galoktistis to pray to this day.[9] The reputation of the church has spread to areas such as Paphos, where many go to worship and see the church up close.[9]