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In 1998, following a Provisional IRA cease-fire, the Good Friday Agreement was concluded and attempts began to be made to restore self-government to Northern Ireland on the basis of power sharing between the two communities. Violence has greatly decreased since the signing of the accord.

Most Northern Irish Catholics support unification, although opinion polls have shown a minority who support remaining part of the UK, usually while continuing to support nationalist political parties. This proportion has slowly but steadily declined over the course of the Troubles. The proportion of Protestants who wish to join the Republic is smaller. There are also considerable numbers of people who give ambiguous answers to questions about the future constitutional status of Northern Ireland.

Many Irish urban centres developed as garrison towns during the years of British rule and this fact contributed towards their particular character. Another significant factor was the fact thar the Industrial Revolution had a limited impact in Ireland. Belfast had its shipbuilding and a number of towns in Ulster had mechanised linen industries, but the majority of towns developed primarily as commercial and administrative centres. By the end of the 20th century, over 50% of the population lived in these urban areas.

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 head of state is the President of Ireland. In keeping with the state's parliamentary system of government the President exercises largely a ceremonial role but does possess certain reserve powers. The presidency is open to all citizens who are at least 35. They are directly elected by secret ballot under the Alternative Vote. A candidate may also be chosen by a consensus among the political parties, in which case it is unnecessary to proceed to a ballot. The President is elected to a seven year term; no candidate may serve more than two terms. In carrying out certain of her constitutional functions, the President is aided by the Council of State.

Political parties in Northern Ireland can be divided into three distinct categories: unionist parties, such as the Democratic Unionist Party, the Ulster Unionist Party, and other smaller parties such as the Progressive Unionist Party and the United Kingdom Unionist Party; nationalist parties, Sinn Féin and the Social Democratic and Labour Party (SDLP); and cross-community parties such as the Alliance Party and the Northern Ireland Women's Coalition.

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.