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On the whole Turkish people rate food and the quality of food quite high on any list of priorities. Fethiye is no exception, there are some really great restaurants.
Three or four to start the ball rolling are:
Ece Saray Hotel, the food here is Turkish with a dose of high cuisine. The service is sometimes a bit OTT and you may find your plate disappear the moment you clear it.....but clear it you will. The wine list is probably the best in the area too.
The next is in Kaya Koy, about 20 minutes from Fethiye town centre.
Sarnic, next to the old water fountain, is a traditional Turkish restaurant with some absolutely superb menus. Faruk and Selma would be happy to discuss your requirements beforehand and provide a sumptuous romantic dinner or will cater for larger groups. They have inside and outside facilities and are open most of the year. Set under the old ruined village of Levissi the setting is as delightful as the food. Good music too if you like to eat to it or silence if you prefer to listen to the birds.
Somine Kebap (website in Turkish and english) is the place to visit if you want the best traditional Turkish food. They offer a very wide ranging menu including fish and steaks but their speciality is of course their Kebabs. Located on the main Fethiye to Calis road, you will find the restaurant opposite Tansas. First class food - you won't be disappointed.
Somine Kebap Restaurant.
In Fethiye Market one of the best fish restaurants is the Megri. Its popular because its central but also the food is very good indeed. Worth telling the waiter that you're eating there for a special occasion. It's on the high side of average Turkish prices though and their Lokantasi restaurant near the duck pond is more reasonable.
In the fish Market is Recep's Place. The fish you buy from the fish monger off the slab is cooked for you by Recep and supplied with all the trimmings.....you just can't get better fresher fish in Fethiye unless you catch it yourself. Most nights musicians serenade you while you eat.