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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.

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.

The three most important international airports in the Republic are Dublin Airport, Cork Airport and Shannon Airport. All provide extensive services to the UK, Europe and North America. The Irish national airline Aer Lingus and low-cost operator Ryanair are based at Dublin. Shannon is an important stopover on trans-Atlantic route for refuelling operations. There are several smaller regional airports in the Republic (Galway Airport, Kerry Airport, Knock Airport, Sligo Airport, Waterford Airport) that mostly limit their services to Ireland and the United Kingdom.

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.

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 culture of the people living on the island of Ireland is far from monolithic. Many notable cultural divides exist between the rural people and city dwellers, between the Catholic and Protestant people of Northern Ireland, between the Irish-speaking people within and without the Gaeltacht regions and the English-speaking majority population, between the settled people and the Travellers, and, increasingly, between new immigrants and the native population.