Fanari Islet is a small islet off the southern coast of Chania, in the Sfakia region of Crete, situated at the entrance to the picturesque bay of Loutro. It is a distinctive feature of the area's coastal landscape and plays an important role in forming Loutro's naturally sheltered harbour.

Together with the enclosed shape of the bay, the islet helps protect the harbour from rough weather, making Loutro a safe anchorage that was used for this purpose for centuries. The wider area is also associated with the ancient city of Phoenix, which served as the port of ancient Anopolis.

Surrounded by the clear waters of the Libyan Sea and the dramatic mountains of Sfakia, Fanari may be small, but it forms an unmistakable part of the coastal scenery and the unique character of Loutro.