Amphibole-bearing mafic inclusions (low to medium-K high-alumina basalt to basaltic andesite) comprise 4.1 vol% of calc-alkaline rhyolite and rhyodacite lavas on Akrotiri Peninsula, Santorini, Greece. Physical features indicate a magmatic origin for the inclusions, involving mingling with the host silicic magma and quenching. Water contents of the mafic magmas are estimated to have been above 4% at water pressures of 1.8 kbars or more at temperatures of approximately 950-1,000 degreesC. Three evolutionary stages are inferred in their petrogenesis. In the first stage infiltration of slab fluids promotes partial melting in the mantle to generate primitive wet basaltic magmas enriched in LREE, LILE, Th and U in comparison to N-type MORB. In the second stage storage and crystal differentiation of primitive magmas occurred in the lithospheric mantle or deep crust, involving olivine, spinel and clinopyroxene followed by amphibole and plagioclase. In the third stage differentiated mafic magma intrudes into porphyritic silicic magma at shallower crustal levels (estimated at 7-10 km). Mingling and quenching of the mafic magmas within the silicic host causes chemical or physical interactions between the inclusions and the host prior to and during eruption. The silicic lavas have geochemical affinities with the mafic inclusions, but are relatively depleted in MREE, HREE and Y and enriched in Rb relative to Ba and K. These observations are consistent with involvement of amphibole in magma genesis due either to crystal differentiation from wet basalt or to partial melting of mafic rocks with residual amphibole. Crystallization of wet basalt in the deep crust is preferred on the basis of physical considerations.