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The state was neutral during World War II but offered some assistance to the Allies. In 1949 the state was declared to be a republic; since that time it has been commonly referred to as the "Republic of Ireland". The state was plagued by poverty and emigration until the 1990s. That decade saw the beginning of unprecedented economic success, in a phenomenon known as the "Celtic Tiger". By the early 2000s, it had become one of the richest countries (in terms of GDP per capita) in the European Union, moving from being a net recipient to a net contributor and from a population with net emigration to one with net immigration.

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.

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.

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 island is often referred to as being part of the British Isles. However, some people, especially in Ireland, take exception to this name, which seems to suggest that both islands belong to Britain. For this reason, "Britain and Ireland" is commonly used as a more neutral alternative. Another suggestion, although much less used, is the Islands of the North Atlantic (IONA).

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.

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.

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.

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.

There have been recent efforts in Ireland to use renewable energy such as wind energy with large wind farms being constructed in coastal counties such as Mayo and County Antrim. Recently what will be the world's largest offshore wind farm is being developed at Arklow Bank off the coast of Wicklow. It is estimated to generate 10% of Irelands energy needs when it is complete. These constructions have in some cases been delayed by opposition from locals, most recently on Achill Island, some of whom consider the wind turbines to be unsightly. Another issue in the Republic of Ireland is the failure of the aging network to cope with the varying availability of power from such installations. Turlough Hill is the only energy storage mechanism in Ireland.