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Portugal gained its first independence (as Kingdom of Galicia and Portugal) in 1065 under the rule of Garcia. Because Garcia was a tyrant and the others wanted the lands of their brothers, Portuguese and Galician nobles rebelled and the country rejoined Leon and Castile.

Portugal has been a significant beneficiary of the European Union and is a proponent of European integration. Portugal held the presidency of the European Union for the second time during the first half of 2000. Portugal used its term to launch a dialogue between the EU and Africa and to begin to take steps to make the European economy dynamic and competitive. In 2002, the Euro began to circulate as Portugal's currency.

Carnival is widely celebrated in Portugal, some traditional carnivals dates back several centuries.

During the summer, in the month of June, festivities dedicated to three saints known as Santos Populares (Eng. Popular saints) take place in all over Portugal. Why the populace associated the saints to these pagan festivities is not known. But it is possibly related to Roman or local deities before Christianity has spread in the region. The three saints are Saint Anthony, Saint John and Saint Peter. A common denominator in these festivities are the wine and água-pé (drink basically constituted by grape juice), traditional bread along with sardines, marriages, traditional street dances, fire, fireworks and joy.

Portugal traces its national origin to 24 June 1128 with the Battle of São Mamede. Afonso proclaimed himself first as Prince of Portugal and in 1139 as the first King of Portugal. By 1143, with the assistance of a representant of the Holy See at the conference of Zamora, Portugal was formally recognized as independent, with the prince recognized as Dux Portucalensis. In 1179, Afonso I was declared, by the pope, as King. After the Battle of São Mamede, the first capital of Portugal was Guimarães, from which the first King ruled. Later, when Portugal was already officially independent, he ruled from Coimbra.

The threat of a communist takeover in Portugal generated considerable concern among the country's NATO allies. The revolution also led to the country abruptly abandoning its colonies overseas and to the return of an estimated 600,000 Portuguese citizens from abroad.

The Carnation Revolution of 1974, an effectively bloodless left-wing military coup, installed the Third Republic. Broad democratic reforms were implemented.

From the 16th century, Portugal gradually saw its wealth decreasing. Even if Portugal was officially an autonomous state, the country was a Spanish puppet and Portuguese colonies were attacked by Spain's opponents, especially the Dutch and English.

With the 1975-76 independence of its colonies (except Macau, because it hadn't any independentist movement), the 560 year old Portuguese Empire had already effectively ended. With it, 15 years of war effort also came to an end. Also many Portuguese returned from the colonies, coming to comprise a sizeable sector of the population and starting an economic recovery, thus opening new paths for the country's future just as others closed. In 1986, Portugal entered the European Union.

In the elections of February 20, the Socialist Party obtained its largest victory ever; for the first time in the democratic history of the country a Socialist government would be formed with an absolute majority in the Assembly of the Republic.

In 1975, Portugal granted independence to its Overseas Provinces (Províncias Ultramarinas in Portuguese) in Africa (Mozambique, Angola, Guinea-Bissau, Cape Verde and São Tomé and Príncipe). In that same year, Indonesia invaded and annexed the Portuguese province of Portuguese Timor (East Timor) in Asia before independence could be granted. The Asian dependency of Macau, after an agreement in 1986, was returned to Chinese sovereignty in 1999. Portugal applied international pressure to secure East Timor's independence from Indonesia, as East Timor was still legally a Portuguese dependency, and recognized as such by the United Nations. After a referendum in 1999, East Timor voted for independence and Portugal recognized its independence in 2002.

Within the Portuguese political culture, the PSD is described as center-right and the PS is described as center-left. Other parties with seat in the parliament are the PP (Partido Popular) – Popular Party, PCP (Partido Comunista Português) – Communists, Os Verdes – The Greens, and the BE (Bloco de Esquerda) – Left Block. BE, Os Verdes and PCP are left wing and the PP right wing.

Portugal has a territorial dispute with Spain. By the Vienna Treaty of 1815, Spain agreed to return Olivença (Olivenza in Spanish) to Portugal, but this agreement was never met. Portugal has periodically reasserted its claim to the territory. This issue has been discussed at the Portuguese Parliament as recently as 2004. In accordance with international law, Olivença is still considered to be Portuguese territory, despite being under Spanish administration since 1801.

The Parliament, or Assembly of the Republic (Assembleia da República in Portuguese) is a unicameral body composed of 230 deputies. It is elected by universal suffrage according to a system of proportional representation to multi-member constituencies. Deputies serve terms of office of 4 years, unless the president dissolves the assembly and calls for new elections. The Assembly of the Republic is the main legislative body. The President of Parliament substitutes the President of the Republic in the event of his absence.