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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".

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.

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.

The dialect of English spoken in Northern Ireland shows heavy influence by that of Scotland, thereby giving it a distinct accent compared to other forms of Hiberno-English, along with the use of such Scots words as wee for 'little' and aye for 'yes'. Some jocularly call this version of Hiberno-English phonetically by the name Norn Iron. There are supposedly some minute differences in pronunciation between Protestants and Catholics, the best known of which is the name of the letter h, which Protestants tend to pronounce as "aitch", as in British English, and Catholics tend to pronounce as "haitch", as in Hiberno-English. However, geography is a much more important determinant of dialect than ethnic background. English is by far the most widely spoken language in Northern Ireland.

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.

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.