A few minutes drive east of Yalikavak, past magnificent roadside rock formations and towering mountain peaks covered in pine forests, brings you to the secluded village of Gundogan. The old Greek name 'Farilya' means 'Sunrise' and is still visible on some signposts. At one time most of the inhabitants lived by the seashore supporting the main local industries of fishing and sponge diving, but fear of British gun boats during the First World War caused the villagers to move inland, leaving the waterfront spacious and uncrowded.

Once an important fishing center, Gundogan's major economies are now agriculture (primarily citrus fruit) and tourism. A few small but comfortable hotels dot the beach, and the intimate seaside restaurants proudly serve the fresh catches of Gundogan's remaining fishermen. A seaside road occupies most of the available beachfront but the numerous jetties jutting from the shore provide plenty of comfortable and private spots for sunning and swimming. Daily boats for hire are available from the small harbor.

Gundogan also offers some interesting historical sites. Across the bay is Küçük Tavsan (Little Rabbit) Island, where and old Greek Church is clearly visible atop the hill. A step climb up the ridge just outside the upper village leads to a flight of 50 steps cut into the rock and the entrance to a small but spectacularly sited monastery. In addition, on the far side of the main Yalikavak-Torba road, across from the upper village, an old Ottoman tower pokes its head from the lush pine forest.