Herceg Novi was founded (on a former small fishing village
existing since Roman Empire times) as a fortress in 1382 by Bosnian
King Stjepan Tvrtko I and was called Sveti Stefan or Castelnuovo.
After the death of Tvrtko, Duke Sandalj Hranić of the Herzegovinian Kosačas acquired
Castelnuovo. During his reign, Herceg Novi picked up trading salt. When Hranić
died, his nephew, Herzog Stjepan Vukčić Kosača, inherited Castelnuovo.
Under Stjepan, Castelnuovo expanded and thus became a city, renaming it to
Herceg Novi. The Turks conquered Herceg Novi in 1482,