Modern Loutrochori is a relatively new village; it was founded in the 1920s by the first Greek refugees from Pontus, under the name "Μπάνια" ("Bania"). After the Greek Genocide and the Greco-Turkish War (1919-1922), a large number of Pontic Greek refugees arrived at the village as a result of the population exchange under the Treaty of Lausanne. In 1926, the village's name was changed to "Λουτροχώρι" (Loutrochori).