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Nationalist grievances at Unionist discrimination within the state eventually led to large civil rights protests in 1960s. It was during this period of civil unrest that the Provisional IRA, an extra-legal paramilitary group favouring the creation of a united Ireland, began its campaign of bombings and shootings. Other groups on both the Unionist and nationalist side also began to participate in the violence and the period known as the "Troubles" began. Owing to the civil unrest the British government suspended home rule in 1972 and imposed direct rule.

The Anglo-Irish Treaty was narrowly ratified by the Dáil in December 1921 but was rejected a large minority, resulting in the Irish Civil War which lasted until 1923. In 1922, in the middle of this war, the Irish Free State came into being. For its first years the new state was governed by the victors of the Civil War. However in the 1930s Fianna Fáil, the party of the opponents of the treaty, were elected into government. The party introduced a new constitution in 1937 which renamed the state to simply "Ireland".

Northern Ireland has been a major factor in Irish politics since the island of Ireland was divided between Northern Ireland and the twenty-six county southern state in 1920. The creation of Northern Ireland led to conflict between northern nationalists (mostly Catholic) who seek unification with the independent southern state and Unionists (mostly Protestant) who wish for Northern Ireland to remain within the United Kingdom. This conflict exploded into a violent conflict in the late sixties known as the 'Troubles' involving groups such as the Provisional IRA, loyalist paramilitaries, the police and the British army. The Troubles have caused thousands of deaths in Northern Ireland but have also spilled over into bombings and acts of violence on Great Britain and in the Republic of Ireland.

Chinese and Urdu are also spoken by Northern Ireland's Asian communities. According to the most recent census returns, Chinese is now the second most widely spoken language, though the 8000-strong Chinese community — while often referred to as the "third largest" community in Northern Ireland — is tiny by international standards.

Since its foundation it has been the stated long-term policy of governments of the state now called the Republic of Ireland to bring an end to the conflict in Northern Ireland and to bring about a united Ireland. Northern Ireland has also, in the past, often been a source of conflict between the Irish Government and the government of the United Kingdom. In order to find a solution to the Troubles the Irish Government became a partner in the Good Friday (Belfast) Agreement in 1998.

The area now known as Northern Ireland has had a diverse history. From serving as the bedrock of Irish resistance in the era of the plantations of Queen Elizabeth and James I in other parts of Ireland, it became itself the subject of major planting of Scottish and English settlers after the Flight of the Earls in 1607 (when the native aristocracy left en masse).

A number of political parties are represented in the Dáil and coalition governments are common. Neither of the two largest parties, Fianna Fáil and Fine Gael, strongly identifies itself as either a left or right-wing group. The third largest party in the state is the centre-left Labour Party. Labour is joined on the left by the Green Party, Sinn Féin and the Socialist Party. The right is represented by the Progressive Democrats who, while liberal on economic policy, are left-wing on social matters. Independent TDs (MPs) also play an important role in Irish politics.

Today, Northern Ireland comprises a diverse patchwork of community rivalries, represented in some areas by whole communities where lamp posts and some homes fly the Irish national flag, the tricolour, or the Union Flag, the symbol of British identity, while even the kerbstones in less affluent areas get painted green-white-orange or red-white-blue, depending on whether a local community expresses nationalist/republican or unionist/loyalist sympathies.

A significant recent change to pub culture in Ireland has been the introduction of a smoking ban, in all workplaces, which includes pubs and restaurants. The ban was introduced on 29 March 2004. A majority of the population support the ban, including a significant percentage of smokers. Nevertheless, the atmosphere in pubs has changed greatly as a result, regardless of whether it has boosted or lowered sales, or whether it is a "good thing" or a "bad thing".

The late nineteenth and early twentieth centuries saw a vigorous but unsuccessful campaign for Irish home rule, followed by the eclipse of moderate nationalism by militant separatism. In 1922, following the Anglo-Irish War, the twenty-six counties of Ireland seceded from the United Kingdom as the Irish Free State. The remaining six, in the north-east, remained within the Union as Northern Ireland. Secession for southern Ireland led directly to the Civil War, as militant nationalists split into two factions and turned against one another.

For much of their existence electricity networks in the Republic of Ireland and Northern Ireland were entirely separate. Both networks were designed and constructed independently, but are now connected with three interlinks and also connected by Northern Ireland Electricity (NIE) though Great Britain to mainland Europe. The Electricity Supply Board (ESB) in the Republic drove a rural electrification programme in the 1940s until the 1970s.

A majority of the present-day population are unionist and wish to remain part of the United Kingdom, but a significant minority, known as nationalists, want to see a united Ireland. These two views are linked to deeper cultural divisions. Unionists are predominantly Protestant and often descendants of Scottish and English (mainly Scottish) settlement in previous centuries, while nationalists are predominantly Catholic and usually descend from the Irish population predating such settlement. The conflict between these two sets of identities, including alleged discrimination against nationalists under the Stormont government (1920–72) giving rise to the nationalist "Civil Rights Movement" in the 1960s, and eventually to a long-running conflict known as The Troubles.