The Maldivians are a mixed people, speaking an Indo-European language called Divehi (the official language); Arabic, Hindi, and English are also spoken. Islam (Islāmic world) is the state religion. The first settlers, it is generally believed, were Dravidian and Sinhalese peoples from southern India and Sri Lanka. Traders from Arab countries, Malaya, Madagascar, Indonesia, and China visited the islands through the centuries. With the exception of those living in Male, the only relatively large settlement in the country, the inhabitants of the Maldives live in villages on small islands in scattered atolls. Only about 20 of the islands have more than 1,000 inhabitants, and the southern islands are more densely populated than the northern ones. The birth rate for the Maldives is somewhat higher than the world average, but the death rate is lower. About one-third of the total population is under 15 years of age.

One of the poorest countries in the world, the Maldives has a developing economy based on fishing, tourism, boatbuilding, and boat repairing. The gross national product (GNP) per capita is among the lowest in the world. Most of the population subsists outside a money economy on fishing, coconut collecting, and the growing of vegetables and melons, roots and tubers (cassava, sweet potatoes, and yams), and tropical fruits. Cropland, scattered over many small islands, is minimal, and nearly all of the staple foods must be imported. Fishing, the traditional base of the economy, continues to be the most important sector, providing employment for approximately one-fourth of the labour force as well as accounting for a major portion of the export earnings. Tuna is the predominant fish caught, mostly by the pole-and-line method, although a good deal of the fishing fleet has been mechanized. Most of the fish catch is sold to foreign companies for processing and export.

The Maldives national shipping line forms the basis of one of the country's commercial industries. Tourism is a fast-growing sector of the economy. Resort islands and modern hotels in Male have attracted increasing numbers of tourists during the winter months. Industries are largely of the handicraft or cottage type, including the making of coir (coconut-husk fibre) and coir products, boatbuilding, and construction. Imports include consumer goods such as food (principally rice), textiles, medicines, and petroleum products. Fish—mostly dried, frozen, or canned skipjack tuna—accounts for the bulk of exports. The United States, Sri Lanka, and Singapore are among the main trading partners. Boats provide the principal means of transport between the atolls, and scheduled shipping services link the country with Sri Lanka, Singapore, and India. There is a national airline, and the airport at Male handles international traffic.

The constitution of the Maldives was adopted in 2008. The head of state and government is the president, assisted by a vice president and a cabinet. The president and vice president are directly elected by universal suffrage to a maximum of two five-year terms. The cabinet consists of the vice president, government ministers, and the attorney general. With the exception of the vice president, members of the cabinet are appointed by the president.

The unicameral legislature, called the People's Majlis, meets at least three times per year. Its members are elected to five-year terms from Male island and from each of the 20 atoll groups into which the country is divided for administrative purposes. The number of representatives from each administrative division is determined on the basis of population, with a minimum of two per division. The 2008 constitution established Islam as the official state religion. Non-Muslims cannot become citizens, and the People's Majlis is prohibited from making any law that contravenes the tenets of Islam. Other governmental bodies include civil service and human rights commissions.

The highest legal authority is the Supreme Court. Its judges are appointed by the president in consultation with the Judicial Service Commission, a body of 10 members appointed or elected from various branches of the government and the general public. The Judicial Service Commission independently appoints all other judges. There are no judicial term limits; the mandatory retirement age is 70. All judges must be Sunni (Sunnite) Muslims. The Supreme Court bases decisions upon the constitution and Maldives law; in cases in which applicable law does not exist, Sharīʿah (Islamic law) is considered. Other courts are the High Court and trial courts.

Most Maldivians rely on traditional medical practices when ill; Male has a small hospital. Major illnesses include gastroenteritis, typhoid, cholera, and malaria. Life expectancy is about 68 years for men and 67 for women.

Three types of formal education are available in the Maldives, including traditional schools (makthabs) designed to teach the reading and reciting of the Qurʾān, Divehi-language schools, and English-language primary and secondary schools. The English-language schools are the only ones that teach a standard curriculum and offer secondary-level education. Students must go abroad for higher education. Only about two-thirds of the school-age population is enrolled in schools.

The archipelago was inhabited as early as the 5th century BCE by Buddhist peoples, probably from Sri Lanka and southern India. According to tradition, Islam was adopted in 1153 CE. Ibn Baṭṭūṭah, a notable North African traveler, resided there during the mid-1340s and described conditions at that time, remarking disapprovingly on the freedom of the women—a feature that has been noticeable throughout Maldivian history.

The Portuguese forcibly established themselves in Male from 1558 until their expulsion in 1573. In the 17th century the islands were a sultanate under the protection of the Dutch rulers of Ceylon (Sri Lanka), and, after the British (British Empire) took possession of Ceylon in 1796, the islands became a British protectorate, a status formalized in 1887. In 1932, before which time most of the administrative powers rested with sultans or sultanas, the first democratic constitution was proclaimed, the country remaining a sultanate. A republic was proclaimed in 1953, but later that year the country reverted to a sultanate.

In 1965 the Maldive Islands attained full political independence from the British, and in 1968 a new republic was inaugurated and the sultanate abolished. The last British troops left on March 29, 1976, the date thereafter celebrated in the Maldives as Independence Day. Ibrahim Nasr, the country's first president, was succeeded in 1978 by Maumoon Abdul Gayoom, who was reelected to his sixth consecutive term in 2003. The Maldives became a member of the Commonwealth in 1982.

In December 2004 the Maldives was damaged by a large tsunami (Indian Ocean tsunami) caused by a massive earthquake in the Indian Ocean off Indonesia. Scores of people were killed, and much property was damaged.

In the first years of the 21st century, Gayoom's government embarked on a long-term plan to modernize and democratize the Maldives, particularly its economy and political system. The plan also identified the country's legal system as inadequate. Beginning in 2003, wide-ranging reforms were instituted to improve human rights and the system of governance. A multiparty political system was created. In 2008 a new constitution was adopted that established greater governmental checks and balances, strengthened the powers of the legislature and judiciary, and allowed women to run for president. The country's first multicandidate presidential election was held in October of that year, and former political prisoner Mohamed Nasheed was elected president, thus ending Gayoom's 30 years in office. One of Nasheed's plans was to obtain a new homeland in the region to which the Maldive islanders could eventually be resettled, as the low-lying islands were believed to be under serious threat from rising sea levels.