Beneath Tragara's terrace starts the way leading to the Faraglioni, and then continues towards the Pizzolungo and Matermania. The Faraglioni (Crags) are probably Capri's best known attraction. The term Faraglioni is generic (even though those on Capri are the best examples anywhere) and describes a geological formation in which high, sheer cliffs have been strongly eroded by the sea and wind to the point that sections now remain isolated from the mainland. They might be formed either of limestone (like those on Capri) or be of volcanic origin, and their isolation may have resulted from tectonic movement or progressive massing of lava. In either case, the characteristic feature is always the strong erosive action of the sea which models the rock into bare, sharpened masses.

There are three stacks in the Capri Faraglioni: the first, 109 metres high, is attached to the coast and named "Stella". The stack furthest out is 104 metres high and known as "Scopolo". Between the two is the "Faraglione di mezzo" (stack in the middle) which is 81 metres high and features a natural gallery from one side to the other 60 metres long. The rocks are also famous for being the home of a rare sort of lizard, the "blue lizard", which is unusually coloured blue along its entire body. It was thought at first that the blue lizard only lived on Capri but it seems it is also present in similar rock formations along the Sicilian coast.

The name "Faraglioni" is probably derived from ancient Greek and Roman place names containing the Greek word "pharos" (lighthouse) from the times when fires were burned on top of high places along the coast to guide ships, especially during nights of a new moon. Greek and Roman sailors always used to sail along coasts whenever possible as their boat construction techniques were unsuitable for deep sea navigation and, in the days before compasses, due to problems of orientation. This practice, however, exposed them to the dangers of running aground on sandbanks or hitting rocks and therefore shipwrecks were not uncommon. Consequently, the need arose to signal the rocks and cliffs that lay off the coast.