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It locates near the Port of Thessaloniki and for centuries was one of the most important market places of the city. Its name came about from the many olive oil shops of the area. Many Jews of the city were living there, while the so-called "Frankish district", with the French/Italian merchants and residents, was located beside.
In the years before World War I it came to form the red light district, with the area starting to host many brothels. In 1985, Ladakika was listed as a heritage site by the Ministry of Culture. Its notable architectural style with 19th century buildings is preserved and protected.
Nowadays, having undergone gentrification in the 1980s, Ladadika forms the entertainment district of the city, hosting bars, nightclubs, restaurants, and pubs in what used to be old oil stores and merchant warehouses, which spill out into a network of pedestrianized streets and small squares, like Morichovou Square, popular place for tourists.
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