The exact date of the founding of the monastery is not precisely known.
According to tradition, the foundation of the monastery is sometimes attributed to the Byzantine emperor Heraclius and sometimes to the emperor Arcadius in the 5th century.
And, according to the second version, the monastery took its name from the name of the emperor.
However, in Crete, it is common for monasteries to be named after the monk that founded the building, which lends support to the theory that Arkadi may have been founded by a monk named Arkadios.
Other such monasteries are Vrontisiou, Arsiniou and Aretiou.

According to Joseph Pitton de Tournefort, the monastery was built on the site of an ancient city, Arcadia.
Legend tells that after the destruction of Arcadia, all the springs and fountains stopped flowing until a new city was built.
However, in 1837, Robert Pashley found evidence to suggest that it was impossible for the monastery to have been built on the ruins of another city, so this idea has lost credence.

In 1951, the professor K. Kalokyris published an inscription dating to the 14th century and verified the hypothesis that a monastery was dedicated to Saint Constantine in this period.
The inscription was located on the pediment of a church that predates the current one, over the entrance door.
It read:
"The church carrying the name of Arkadi is consecrated to Saint Constantine."
The exact date of the founding of the monastery is not precisely known. According to tradition, the foundation of the monastery is sometimes attributed to the Byzantine emperor Heraclius and sometimes to the emperor Arcadius in the 5th century. And, according to the second version, the monastery took its name from the name of the emperor. However, in Crete, it is common for monasteries to be named after the monk that founded the building, which lends support to the theory that Arkadi may have been founded by a monk named Arkadios. Other such monasteries are Vrontisiou, Arsiniou and Aretiou.
According to Joseph Pitton de Tournefort, the monastery was built on the site of an ancient city, Arcadia. Legend tells that after the destruction of Arcadia, all the springs and fountains stopped flowing until a new city was built. However, in 1837, Robert Pashley found evidence to suggest that it was impossible for the monastery to have been built on the ruins of another city, so this idea has lost credence.
In 1951, the professor K. Kalokyris published an inscription dating to the 14th century and verified the hypothesis that a monastery was dedicated to Saint Constantine in this period. The inscription was located on the pediment of a church that predates the current one, over the entrance door. It read:
"The church carrying the name of Arkadi is consecrated to Saint Constantine."
Arkadi Monastery