Herceg Novi was founded (on a former small fishing village, existing since Roman Empire times) as a fortress in 1382 by first Bosnian King Stjepan Tvrtko I and was called Sveti Stefan or Castelnuovo.old town is amazing. It is on a fairly steep hill that leads all the way down to the sea. Wandering through the small stairways to the various plazas and fortresses is a many hour adventure. There are both Orthodox and Catholic churches that are well worth visiting.
Herceg Novi has two town squares, including the small, stone-paved Belavista (nice view), which is easy to get to from the main town square.