Albert attended Amherst College (B.A., 1981) in Massachusetts and briefly served in the French navy. Following his mother's death in 1982, he became president of the Monaco Red Cross and was later involved with a number of charities. An avid sportsman, he formed the Monegasque Bobsleigh and Skeleton Federation in 1987 and, as a member of the principality's bobsled team, was a five-time Olympian. Albert was also active in the International Olympic Committee, holding a number of positions. In 1994 he became chair of Monaco's Olympic committee.

As his father's health began to decline in the early 21st century, Albert assumed greater royal responsibilities. In April 2005 Prince Rainier died, and Albert formally assumed the throne on July 12. He did so amid controversy as days earlier he had publicly acknowledged that he had fathered a son out of wedlock. The child, however, was barred from inheriting the throne due to a 2002 constitutional amendment that required the heir's parents to be married. Another amendment included female siblings and their legitimate heirs in the line of succession, easing concerns of Monaco's future in the event that Albert, who had two sisters (Caroline and Stéphanie), did not produce a rightful heir.