The Germans founded Hermannstadt (Sibiu) in the 12th century on the trade route through the Olt valley. This is the site of the Roman city of Caedonia, the first reference to the German settlement refers to "Praepositum Cibin", with the Romanian name being derived from Cibin now the name of the river and the nearby mountains. The Hungarian name is Nagyszeben (old Cibin).
Sibiu was the most important city of the Transylvanian Saxons during the middle ages. The centre of the medieval town is still mostly intact including much of the walls, bastions, houses and narrow alleys.