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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.

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).

Much of the Irish calendar still today reflects the old pagan customs, with later Christian traditions also having significant influence. As in other countries, the date for observing Christmas was deliberately chosen to coincide with the winter solstice. Christmas in Ireland has several local traditions, some in no way connected with Christianity. On 6 January, which is known as "The Little Christmas" (An Nollaig Bhéag) or "The Women's Christmas" (Nollaig na mBan), there is a custom of "Wren boys" who call door to door, in times past, with a dead wren.

From its creation in 1921 until 1972 Northern Ireland enjoyed limited self-government within the United Kingdom, with its own parliament and prime minister. However the Protestant and Catholic communities in Northern Ireland each voted almost entirely along sectarian lines, meaning that the government of Northern Ireland was dominated by the Unionist majority which did not permit Catholics to participate in the government.

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).

Under the Belfast Agreement (also known as the Good Friday Agreement) and Article 3 of the constitution a North-South Ministerial Council and six North-South Implementation Bodies coordinate activities and exercise a limited governmental role within certain policy areas across the whole island of Ireland. The Implementation Bodies have limited executive authority in six policy areas. Meetings of the Council take the form of meetings between ministers from both the Republic's Government and the Northern Ireland Executive.