The island remains the home of a small, but flourishing, wine industry, based on the indigenous grape variety, Assyrtiko, with auxiliary cultivations of two other Aegean varietals, Athiri and Aidani.

The vines are extremely old and resistant to phylloxera (attributed by local winemakers to the well-drained volcanic soil and its chemistry), so the vines needed no replacement during the great phylloxera epidemic of the late 19th century. In their adaptation to their habitat, such vines are planted far apart, as their principal source of moisture is dew, and they often are trained in the shape of low-spiralling baskets, with the grapes hanging inside to protect them from the winds.

The viticulturally pride of the island is the sweet and strong Vinsanto (Italian: "holy wine"), a dessert wine made from the best sun-dried Assyrtiko, Athiri, and Aidani grapes, and undergoing long barrel aging (up to twenty or twenty-five years for the top cuvées). It matures to a sweet, dark amber-orange, unctuous dessert wine that has achieved worldwide fame, possessing the standard Assyrtiko aromas of citrus and minerals, layered with overtones of nuts, raisins, figs, honey and tea.