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Portugal was a strong advocate of independence for East Timor, a former Portuguese colony, and has committed troops and money to East Timor, in close cooperation with the United States, Asian allies, and the United Nations.

In the early first millennium BCE, several waves of Celts invaded Portugal from central Europe and intermarried with the local Iberian people, forming the Celt-Iberian ethnic group. Two of the new tribes formed by the intermarrying were the Lusitanians, who lived between the Douro and Tagus rivers, and the Calaicians, who lived north of the Douro river with several other tribes. A Phoenician colony was established in southern Portugal, the Conii. The Celtics, a later wave of Celts, settled in Alentejo. In 238 BCE, the Carthaginians occupied the Iberian coasts.

Portugal is characterized by city, town or village cultural differentiation and there is virtually no regional affiliation, unlike other European countries. Portuguese is spoken throughout the country, with only the villages of Miranda de Douro's Leonese dialect recognised as a locally co-official language. It is known as Mirandese. The closely related Asturian dialect in Spain is another Leonese dialect but not officially recognized by Spain.

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.

In 1095 Portugal seperated almost definitly from the Kingdom of Galicia, Both under the rule of the kingdom of Leon, just like Castille (Burgos). Its territories consisting largely of mountain, moorland and forest, were bounded on the north by the Minho, on the south by the Mondego.