Tlaxcala is a regional commercial and manufacturing centre, largely producing cotton, wool, and synthetic textiles. Highways link it with Mexico City and with Puebla to the south. The surrounding region is naturally forested, but large areas have been cleared to be used for grazing and cultivation; the chief crops are corn (maize) and beans. The Autonomous University of Tlaxcala was founded in 1976. San Francisco Church (constructed 1537–40) includes in its compound the 16th-century Convent of the Assumption. Among other local attractions are the Sanctuary of the Virgin of Ocotlán, and the Tlaxcalan ruins at Tizatlán. The city is also a gateway to nearby resorts, La Malinche National Park (southeast), and Cacaxtla (southwest), which is famed for its pre-Columbian murals. Pop. (2000) city, 73,213; urban agglom., 194,157.

Tlaxcala is situated on the cool, semiarid Mesa Central at a mean elevation of 7,000 feet (2,100 metres) against the backdrop of La Malinche (Matlalcueyetl) volcano, which rises to an elevation 14,636 feet (4,461 metres) within a national park southeast of the capital. The state occupies roughly the same area as did a pre-Hispanic federation that refused to surrender to the Aztecs. Many Indians in the region allied themselves with the conquistador Hernán Cortés (Cortés, Hernán, marqués del Valle de Oaxaca) in his conquest of Mexico. Continued loyalty to Spain brought the Tlaxcala many privileges, including exemptions from tribute. They helped conquer northern Chichimec tribes during the 1700s, supported Spain during the wars of independence, and fought against U.S. forces in the Mexican-American War.

The smallest Mexican state, Tlaxcala is densely populated. Its economy depends largely on agriculture, including corn (maize) and barley, and the raising of dairy cattle and fighting bulls. Also of note are the production of woolen cloths and handicrafts, including woven serapes. Railways and highway networks traverse the state, linking Tlaxcala city with Mexico City and Puebla.

State government is headed by a governor, who is elected to a single six-year term. Members of the unicameral legislature, the State Congress, are elected to three-year terms. Tlaxcala is divided into local governmental units called municipios (municipalities), each of which is headquartered in a prominent city, town, or village. The capital city is the site of the Autonomous University of Tlaxcala (founded 1976). Area 1,551 square miles (4,016 square km). Pop. (2000) 962,646; (2005) 1,068,207.