The Kapsas Monastery of St. John is situated 9km east of Makrigialos, adjacent to Goudouras, and is owned by the Toplou Monastery near Sitia. It is dedicated to the Beheading of St. John the Baptist, which is commemorated on August 29.

This monastery is constructed like a fortress on a steep, rocky slope above the sea, along the edges of the stunning Pervolakia gorge. A picturesque pebble beach can be found in front of the monastery.

It is said that the monk Joseph Gerontoyannis, who lived in a nearby cave, made the monastery famous due to his miraculous abilities. He was able to experience divine visions, walk on the sea to the neighboring island of Koufonissi, and cure any sickness. Today, he is honored on August 7.