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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.

In a number of areas, the island operates officially as a single entity, for example, in sport. The major religions, the Roman Catholic Church, the Church of Ireland and the Presbyterian Church of Ireland, are organised on an all-island basis. 92% of the population of the Republic of Ireland are Roman Catholic, and 40% in Northern Ireland. Some trades unions are also organised on an all-Irish basis and associated with the Irish Congress of Trades Unions (ICTU) in Dublin, while others in Northern Ireland are affiliated with the Trades Union Congress (TUC) in the United Kingdom. The island also has a shared culture across the divide in many other ways. Traditional Irish music, for example, though showing some variance in all geographical areas, is broadly speaking the same on both sides of the border. Irish and Scottish traditional music are similar.

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.

The parliament of the Republic of Ireland is the Oireachtas. The Oireachtas consists of the President and two houses: Dáil Éireann and Seanad Éireann (also known as the Senate). The Dáil is by far the dominant tier of the legislature. The President may not veto laws in most circumstances and the Senate may only delay legislation.

The Constitution of Ireland guarantees the rights of the family and the institution of marriage. However, the reality is that social and economic change in recent years has brought about significant changes in family life in the Republic. According to figures published in September, 2004, 31% of all births in the Republic of Ireland occur outside marriage. This compares with 5% in 1980. The average of mothers having their first child was 30 and the fertility is an average of 1.98 children.

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.

Pub culture, as it is termed, pervades Irish society, across all cultural divides. The term refers to the Irish habit of frequenting public houses (pubs) or bars. Traditional pub culture is concerned with more than just drinking, even though Ireland has a recognised problem with over-consumption of alcohol, with the highest drink consumption in Europe. Per capita alcohol consumption increased by 41% in the period 1989 to 1999. Typically pubs are important meeting places, where people can gather today in the modern Ireland and meet their neighbours and friends in a relaxed atmosphere. Pubs vary widely according to the clientele they serve, and the area they are in. Best known, and loved amongst tourists is the traditional pub, with its tradional Irish music (or "trad music"), tavern-like warmness, and memorabilia filling it.

Prior to 1801 Ireland enjoyed a self-governing status under the Parliament of Ireland, but was ruled by its Anglo-Irish, Protestant minority. In 1801 this parliament was abolished and Ireland became an integral part of a new United Kingdom of Great Britain and Ireland under the Act of Union. In 1922, after the War of Independence, the southern twenty-six counties of Ireland seceded from the United Kingdom (UK) and became the independent state known today as the 'Republic of Ireland'. The remainder of the island, known as 'Northern Ireland', remained part of the UK.