A detailed source and rupture process analyzes of the 10 June 2012 O¨ lu¨deniz- Fethiye (Dodecanese Islands; Mw 6.1) earthquake has been carried out using inversion of both complex body waves and strong ground motion records. The rupture starting from the hypocenter propagated gradually to the southwest. The main rupture is modeled by a main asperity located 2–3 km beneath the hypocenter and two small asperities. The size of the effective source area is about 24 9 12 km, the rupture duration was approximately 12 s and the total seismic moment was estimated to be 1.955 9 1018 Nm. Continuation of compression from the Hellenic Arc to the southeast part of Fethiye Gulf in the north developed many active faults with complex geometries in the region. According to the stress field obtained from the focal mechanism solutions of the 10 June 2012 Fethiye (Dodecanese Islands; Mw 6.1) earthquake and M C 3.5 earthquakes which occurred in Fethiye Gulf, the region between Fethiye Gulf and Rhodes Basin was deformed by the NW–SE oriented extension. (T-r3) principal stress axis is dominant in the region. Additionally, NNW–SSE compression (P-r1) in further southwest of Fethiye Gulf contributed to forming normal and strike-slip faults. Continuation of the NE–SW trending thrust faults located from the west limb of the Hellenic Arc to the southeast of Fethiye Gulf caused deformation in the region due to the seismotectonic model of the region. Both, normal faulting related to the ‘‘pure extension’’ occurred after the compression, and strike-slip faulting associated with the ‘‘transtension’’, have been expressed by the spatial positions of the principal stress axes in the study area.