Pherai has always been one of the most important towns in Thessaly. It is located in the Pelasgian plain, some 90 stadia from the port of Pagasai. The first signs of habitation date back to the Late Neolithic period. In The Bronze Age, Pherai seems to have been a major settlement, mainly due to its strategic position on the road between Larisa and Iolkos (and hence the sea).

After the fall of the Mycenaean civilisation ca. 1200 BCE, Pherai continues to be inhabited although in a smaller scale. Towards the end of the Early Iron Age (ca. 700 BCE), the settlement expands and a sanctuary dedicated to Artemis Enodia is established, becoming the focus of the town's religious life.

One of the most famous rulers of Pherai was Jason. In 374 BCE, Jason was elected tagos (military chief) of the Thessalian koinon. His political power and authority through his chair of the Delphic Amphictiony (a politico-religious coalition), allowed him to become the new arbitrator of Greece. Jason’s ultimate dream was to lead a Greek crusade against Persia. However, his dream never came true as he was assassinated in 370 BCE.

According to the myths, Admetus was the founder and first king of Pherai. Admetus was a true hero, participating in the hunt of the famous Kalydonian boar and later joining the Argonauts in their quest to retrieve the Golden Fleece.

Moreover, Pherai was one of the many Greek towns that sent ships against Troy. Leader of the Pheraian contingent was Eumelos.