The town is named after a local Turkish chieftain during the Ottoman era named Karaca Bey. The former name of the town was Mihalich (), after which a cheese was named, while its ancient name was Miletopolis (Greek: Μιλητόπολις).
The town's name is derived from Karaca Bey, a Turkish chieftain during the Ottoman era. The previous name of the town was Mihalich, after which a cheese was named, and its ancient name was Miletopolis (Greek: Μιλητόπολις).