In 1525, Francisco Cortés de San Buenaventura and a small band of conquistadors, having been engaged to conquer the central regions of this country, were traveling the mountainous areas along the coastline of the Pacific. From there, they were the first to view the vast panorama of present-day Puerto Vallarta.

Electing to explore the distant valley and shoreline, the men descended upon a horde of Indians prepared for war. As the Spaniards were few, Cortés knew he could not win and tried to talk the Indians into surrender.

The chiefs refused his proposition. Cortés was about to order a retreat when Captain Angel Villafaña, second in command, intervened and persuaded Cortés that this would be a God-given opportunity to show their Spanish courage. Reconsidering, Cortés resolved to fight, but first told his soldiers to pray to the Virgin Mary for help.

The Spanish troops were fewer than a hundred men, including an old monk named Juan de Villadiego. On the flag he carried was a Holy Cross inscribed with: "In this I defeated and the one that carries me, it will defeat." On the other side was a rendering of the Immaculate Conception and the words "Mary, Mary, pray for us." Gathered in front of the Spanish force where the multitude of hostile Indians armed and ready to fight.

Just as Cortés was about to give the order, a miracle occurred. The banner of the Holy Cross was illuminated by a brilliant ray of light, which formed a halo pointing to the Holy Virgin. Both the Indians and the Spanish were awestruck, realizing they had been "touched by a divine grace," and withdrew from battle.

To commemorate this event, Captain Don Francisco Cortés de San Buenaventura named the site "Valle de Banderas," and today the bay is known as "Bahía de Banderas" - the Bay of Flags.

Puerto Vallarta's most popular beach, Playa de los Muertos, is located just south of the malecon and the River Cuale.  This beach is surrounded by the neighborhood of Olas Altas (Old Town or Zona Romantica), with its indescribable variety of restaurants and shops.   It is lined with beachfront hotels and restaurants and is usually bustling with activity, sun worshipers by day, and the dining and nightlife crowd after dark. The beachfront bars and restaurants in this area are a great place to catch one of the incredible Vallarta sunsets.