Crete does not seem to have been affected by the movements of people into the Cyclades and the mainland at the end of the 3rd millennium, but important changes were taking place there. Great palaces of a distinctive type built around large rectangular open courts seem to have been constructed within a comparatively short time at the leading centres of Knossos, Phaistos, and Mallia. The art of writing is first attested for certain in Crete at the beginning of this Palatial Period. These developments in Crete appear to have been the result of local evolution.

Crete advanced rapidly along the path of civilization during the period of the Early Palaces, while the mainland relapsed into comparative agricultural stagnation. The art of seal engraving made great strides in Crete. Hard stones, such as jasper and rock crystal, began to be employed for some of the finer seals. A new and much-favoured shape, which may have been adopted from Anatolia, was the signet with a stalk. Anatolian seals found their way to Crete, and impressions of them have been identified in a great deposit of clay sealings from the early palace at Phaistos. Cretan seal designs now included elegant abstract patterns of spirals and concentric circles neatly made with the drill as well as lifelike pictures of animals, birds, and insects, together with mythical beasts such as sphinxes and griffins adapted from Egyptian or Oriental models. Attractive hard stones, such as gabbro, were used by the Cretan vase makers, although they still used the softer chlorites and serpentines. Some of the fine stone vases from communal tombs in the Mesara region and at Mochlos may date from this period, rather than earlier, in the light of discoveries since 1950 in the early palace at Phaistos.

The fast potter’s wheel began to come into use in Crete about the same time as in the Cyclades and on the mainland. Meanwhile, a revolution in the style of Cretan pottery was taking place. During the Early Bronze Age most of the finer vases everywhere in the Aegean area had been decorated with designs in dark, rather shiny paint—shades of red, brown, and black—on a light surface. Toward the end of that period in Crete, however, there was a change to a “light-on-dark” style of decoration; the vases were given an overall wash of the shiny paint previously used for decoration, and designs were applied to this dark surface in white. This new light-on-dark fashion was also adopted, to some extent, in the Cyclades and on the mainland, but in Crete it was developed much further, and, from the beginning of the Palatial Period, decoration in white was regularly supplemented with red to create a striking polychrome effect. This kind of pottery, which flourished in Crete throughout the time of the first palaces and later (c. 2200 to 1600), is known as Kamáres ware from a sacred cave of that name on Mount Ida, where vases with fine polychrome decoration were recovered at the end of the 19th century. Most of the smaller vases in Crete, notably the drinking cups, now copy metal ones in their shapes and often in their molded or impressed decoration, and the exquisite “eggshell” ware, made in the workshops of the great palaces, with walls as thin as those of metal vases and shiny black surfaces adorned with abstract flowerlike designs in a combination of white, red, and orange, is among the finest pottery ever produced in Greek lands. The imitations in clay suggest that vessels of precious metal—gold and silver—were in general use in the palaces of Crete by this time. A silver, two-handled goblet of this period was recovered from a tomb at Gourniá in eastern Crete. Silver occurs in the Cyclades, and it was being mined during the Bronze Age near Laurium in Attica on the mainland.

There were many contacts between Crete and the rest of the Levant during this period. Scarabs and stone vessels from Egypt reached Crete and were imitated there. Cretan Kamáres ware was exported to Cyprus, Syria, and Egypt, where it has been found in tombs and on town sites. Letters recovered from the ruins of the city of Mari on the Euphrates, destroyed by Hammurabi about 1760, refer to objects of Cretan workmanship. It seems that Cretan metalworkers were already preeminent in the civilized world of the time. The daggers they made were of types ultimately derived from Syria, but they were exported to Cyprus in exchange, perhaps, for copper, although supplies existed in Crete. Westward, they may have reached Italy, where native copper daggers are of Cretan shapes and flint imitations of them seem to have been made. It was during this period that tin-bronze began to come into more general use in the Aegean, replacing copper or bronze made by adding arsenic, a process which was effective but dangerous for the craftsman who undertook it. Tin may have reached the Aegean first from Iran through Syria, although Etruria on the western coast of Italy was another possible source.

Burial in Crete was still normally in communal tombs, and many of the Early Bronze Age ones continued in use, but cemeteries of burials in storage jars are also in evidence at this time. No royal tombs of this period have been identified, however, and kings and queens may have been laid to rest, like their subjects, in the tombs of their clans or possibly even buried ceremonially at sea. A large rectangular building with many rooms or compartments in the cemetery area just outside the city at Mallia might have been the tomb of the royal clan there. The local inhabitants plundered it during the 19th century, and its modern name—Chrysolakkos (“Gold Hole”)—suggests what they found. A gold cup and jewelry, including elaborate earrings and pendants, acquired by the British Museum in 1892 and allegedly from a Mycenaean tomb on the island of Aegina near Athens have been thought to be plunder from Chrysolakkos, although recent excavations on Aegina have indicated a wealthy and warlike community that could equally have produced these jewels. They are marked by an unusual style: one earring has a two-headed snake surrounding a pair of leashed hounds over squatting monkeys, with owls and discs hanging on soldered chains. The collection may have been made during the 17th century, after the destruction of the older palaces. French excavations there in the 1920s led to the recovery of similar jewelry, notably a gold dress-pin with flower head and a pendant in the form of a pair of bees (or wasps) facing each other over a disc, which may be meant for a honey cake. This pendant shows that the Cretan jewelers were masters of the art of hard soldering and could use it to fix wire (filigree) or minute globules of gold (granulation) to a background.

Life in the Cyclades seems to have continued much as it had in the Early Bronze Age. Yet, apart from signs scratched or painted on pottery from Phylakopi in Melos, there is little evidence of acquaintance with writing or the use of seals. Some time after the beginning of the period of the Early Palaces in Crete, Phylakopi was defended by a massive wall. Cretan Kamáres ware was exported to the islands of Melos, Ceos, and Aegina and to Lerna and a few other coastal sites on the mainland, and mainland Minyan ware found its way to the islands and to Crete. The trade may partly reflect the trade in Melian obsidian, which may still have been in demand for cheap knives and razors, although metal ones were already in use in the Aegean area from the Early Bronze Age onward. Chamber tombs cut in the rock at Phylakopi appear to go back to this period, but burial in slab-lined cists continued elsewhere in the islands. At some point the fortified settlement at Khalandrianí on Syrus was destroyed by fire and abandoned, but Aegina, Ceos, and other fortified island towns flourished.