For us it has to be :
Sundial - the sheer quality is only enhanced by the great setting.
Oztoklu in the Fruit Market adjoining the fish market - just simple perfection really, also we are made to feel like part of the family but in a very genuine way ( if yo know what I mean?)
Mozaik Bache - consistently good authentic Eastern Turkish Food, great setting, its an Oasis in the middle of Fethiye, the owners aren't bad either!
Zayra - great value for money, top service, lovely food. I really hope the boys succeed in this venture, they deserve it.
Any of the Yacht hotels - not cheap but great for that special occasion.