Ilıca started out as a distinct settlement towards the end of the 19th century, initially as a retreat for wealthy people, especially from İzmir and during summer holidays.

Today, it is a popular destination for many. Mentioned by Pausanias and Charles Texier, Ilıca thermal springs, which extend well into the sea, are also notable in Turkey for having been the subject of the first scientifically based analysis in Turkish language of a thermal spring, published in 1909 by Yusuf Cemal. By his time the thermal springs were well-known both internationally, scientific and journalistic literature having been published in French and in Greek, and across Ottoman lands, since the construction here of a still-standing yalı associated with Muhammad Ali of Egypt’s son Tosun Pasha who had sought a cure in Ilıca before his premature death.

Ilıca has a fine beach of its own, about 1.5 km long, as well as favorable wind conditions which make it a prized location for windsurfing.

One of the main landmarks of Ilıca is the Sheraton hotel.