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The state operates under the Constitution of Ireland, also known as Bunreacht na hÉireann, adopted in 1937. The constitution falls broadly within the liberal democratic tradition. It defines the organs of government and guarantees certain fundamental rights. The constitution may only be amended by referendum. Important constitutional referenda have concerned issues such as abortion, the status of the Catholic Church, divorce and the European Union.

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.

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".

The all-island Kingdom of Ireland (1541-1801) was incorporated into the United Kingdom in 1801 under the terms of the Act of Union, under which the kingdoms of Ireland and Great Britain merged under a central parliament, government and monarchy based in London. In the early 20th century Unionists, led by Sir Edward Carson, opposed the introduction of Home Rule in Ireland. Unionists were in a minority on the island of Ireland as a whole, but formed a majority in the northern province of Ulster. Therefore, after the First World War, Ireland was partitioned in 1921 under the terms of the Government of Ireland Act 1920 between six of the nine Ulster counties in the northeast (forming Northern Ieland) and the remaining twenty-six counties of the south and west (forming Southern Ireland and became the Irish Free State in 1922). When the latter achieved dominion status, the six Northern Ireland counties — under the procedures laid out in the Anglo-Irish Treaty, 1921 — opted out, and so remain as part of the United Kingdom.

Prior to the Government of Ireland Act 1920 the island had existed for centuries as one unified political entity, either on its own (as the Lordship of Ireland, the Kingdom of Ireland) or as part of the United Kingdom of Great Britain and Ireland. Prior to English rule in mediæval times the island was made up of a patchwork of small kingdoms that were people and clan rather than territory-based. At the top of this system was the Ard Ri or High King of Ireland. See Irish States (1171-present).