According to reports a former professional boxer took on drunken revellers at Paraga beach as several onlookers attempted to avoid being caught up in the scrap.
A local report on Proto Thema claimed that both groups of party-goers involved in the fight had been consuming alcohol.
It is alleged that the three men arrested are German, with one of them a former professional boxer.
The incident took place on Sunday lunchtime and, according to Proto Thema, started when the three men who were eventually arrested began harassing members of another group.
Footage of the brawl shows furniture being thrown by some of those involved in the melee, with some of it ending up in the resort’s pool.
Local reports also suggest that the perpetrators attacked a member of staff who tried to intervene and break up the fight.
The two sides were eventually separated by management and offered first aid, although remarkably only minor injuries were reported in the aftermath of the scrap.
The three men deemed responsible for starting the fight were arrested and taken to Mykonos Police Department.
The fight comes after another popular holiday destination was beset by violence, as a violent brawl in the Spanish city of Marbella led to a shooting leaving five people injured in Marbella, Spain.
A fight broke out in the VIP area of the Opium nightclub between two groups and a gunman opened fire.
One of the victims who was seriously injured after being shot in the chest is a 32-year-old Irish national, police have confirmed.