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This state of affairs continued until May 1999 when Scotland's Parliament was established following a referendum. Whereas the old Scottish Parliament had functioned as the full parliament of a sovereign state, the new parliament governs the country only on domestic matters, the United Kingdom Parliament having retained responsibility for Scotland's defence, international relations and certain other areas.

Scotland's territorial extent is generally that established by the 1237 Treaty of York between Scotland and England and the 1266 Treaty of Perth between Scotland and Norway. Exceptions include the Isle of Mann, which is now a crown dependency outside the United Kingdom, Orkney and Shetland, which are Scottish rather than Danish, and Berwick-upon-Tweed, which was defined as subject to the laws of England by the 1746 Wales and Berwick Act.

Humans have lived in Scotland since the end of the last glaciation, around 10,000 years ago. Of the stone, bronze, and iron age civilisations which occupied the country, many artefacts, but few examples of writing, remain. Thus the written History of Scotland largely begins with the arrival of the Roman Empire in Britain. From a classical historical viewpoint Scotland seemed a peripheral country, slow to gain advances filtering out from the Mediterranean fount of civilisation, but as knowledge of the past increases it seems remarkable how early and advanced some developments have been, and how important the seaways were to Scottish history. The country's lengthy struggle with England, its more powerful neighbour to the south, repeatedly forced it to rely on trade, cultural and often strategic ties with a number of European powers. Following the Act of Union and the subsequent Scottish Enlightenment and Industrial Revolution, Scotland became one of the commercial, intellectual and industrial powerhouses of Europe. Its industrial decline following World War II was particularly acute, but in recent decades the country has enjoyed something of a cultural and economic renaissance, fuelled in part by a resurgent financial services sector, the proceeds of North Sea oil and gas, and latterly a devolved parliament.

In 1326, the first full Scottish Parliament met. The parliament had evolved from an earlier council of nobility and clergy, the colloquium, constituted around 1235, but in 1326 representatives of the burghs — the burgh commissioners — joined them to form the Three Estates.

In 1547, after the death of Henry VIII, forces under the English regent Thomas Somerset were victorious at the battle of Pinkie Cleugh, the climax of the Rough Wooing and followed up by occupying Edinburgh. However it was to no avail since Queen Mary was in France and Marie de Guise called on French reinforcements who helped stiffen resistance to the English occupation. By 1550, after a change of regent in England, the English withdrew from Scotland completely.

The written history of Scotland largely begins with the coming of the Roman empire to Britain. Although the pre-Roman inhabitants occasionally used writing for commemorative purpose, these societies favoured a strong oral history. With the loss of the druidic tradition (due to war, famine, and particularly the proscriptions of later Christian missionaries), the people forgot much of this lore. The only surviving pre-Roman account of Scotland originated with the Greek Pytheas of Massalia who circumnavigated the British islands (which he called PretThe British Saint Ninian conducted the first Christian mission in Scotland. From his base, the Candida Casa (present-day Whithorn) on the Solway Firth, he spread the faith in the south and east of Scotland and in the north of England. However, according to the writings of Saint Patrick and Saint Columba, the Picts appear to have renounced Christianity in the century between Ninian's death (432) and the arrival of Saint Columba in 563. The reason is not known. The Gaels re-introduced Christianity into Pictish Scotland, gradually pushing out worship of the older Celtic gods. The most famous evangelist of that period, Saint Columba, came to Scotland in 563 and settled on the island of Iona. Some consider his (possibly apocryphal) conversion of the Pictish King Brude the turning point in the Christianization of Scotland.

Banking in Scotland also features unique characteristics. Although the Bank of England remains the central bank for the UK Government, three Scottish corporate banks still issue their own banknotes: (the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank). These notes have no status as legal tender in England, Wales or Northern Ireland (although they can be used throughout the UK, particularly in Northern Ireland, where Irish banks also issue their own banknotes, and they are also freely accepted in the Channel Islands). In Scotland, neither they nor the Bank of England's notes rank as legal tender (as Scots law lacks the concept), however banknotes issued by any of the four banks meet with common acceptance

Scotland is one of the four constituent nations of the United Kingdom of Great Britain and Northern Ireland. The UK has no single written constitution document. Until the 1707 Acts of Union Scotland was an independent nation state. However, upon these acts coming into effect both Scotland and England's parliaments were dissolved and reconstituted as a parliament for all of Great Britain using the former English parliament's buildings and executive institutions. The Scottish and English crowns were unified in 1603 when James VI of Scotland became James I of England. In 1801 the Kingdom of Great Britain was unified with Ireland.

Scotland comprises the northern part of the island of Great Britain; it is bordered on the south by England. The country consists of a mainland area plus several island groups, including Shetland, Orkney, and the Hebrides, divided into the Inner Hebrides and Outer Hebrides. Three main geographical and geological areas make up the mainland: from north to south, the generally mountainous Highlands, the low-lying Central Belt, and the hilly Southern Uplands. The majority of the Scottish population resides in the Central Belt, which contains three of the country's six largest cities, Edinburgh, Glasgow, Stirling, and many large towns. Most of the remaining population lives in the North-East Lowlands where two of the remaining three cities, Aberdeen and Dundee, are situated. The final city, Inverness, is situated where the River Ness meets the Moray Firth, on the fault between the North-West Highlands and the Cairngorms.

Until 1832 Scottish politics remained very much in the control of landowners in the country, and of small cliques of merchants in the burghs. However by 1885 around 50% of the male population had the vote, the secret ballot had become established, and the modern political era had started.

During the 1920s and 1930s, as ship-building and other industrial pursuits came to be more profitable outwith the British Isles, Glasgow and Clydebank slowly decayed and fell into economic depression.

In 1603, the Scottish King James VI inherited the throne of England, and became James I of England. James moved to London and only returned to Scotland once. In 1707, the Scottish and English Parliaments signed the Treaty of Union, which was deeply unpopular in Scotland, as it had been negotiating from a position of economic weakness and suffering from English tariffs. Implementing the treaty involved dissolving both the English and the Scottish Parliaments, and transferring all their powers to a new Parliament sitting in London which then became the Parliament of the United Kingdom. A customs and monetary union also took place.

The significance of coal, once Scotland's most important mineral resource, has declined. Oil, however, gained prominence in Scotland's economy during the 1970s, with the growth of North Sea oil extraction companies. Natural gas is also abundant in the North Sea fields. Aberdeen is the centre of the oil industry. Other important industries are textile production (woollens, worsteds, silks, and linens), distilling, and fishing. Textiles, beer, and whisky, which are among Scotland's chief exports, are produced in many towns. Salmon are taken from the Tay and the Dee, and numerous coastal towns and villages are supported by fishing from the North Sea. Only about one quarter of the land is under cultivation (principally in cereals and vegetables), but sheep raising is important in the mountainous regions.

Before 1975 local government in Scotland was organised on the county system. In reforms that took effect from 1975, the Conservative government of Edward Heath introduced a system of two-tier local government in Scotland, divided between large Regional Councils and smaller District Councils. The only exceptions to this were the three Island Councils, Western Isles, Shetland and Orkney which had the combined powers of Regions and Districts. In 1995 the Conservative government of John Major decided to abolish this system and merge their powers into new Unitary Authorities, roughly equivalent to the old counties.

Almost all residents of Scotland speak English, although many also speak various dialects of Lowland Scots which differ markedly from Scottish Standard English. Slightly greater than 1% of the population use Scottish Gaelic as their language of everyday use, primarily in the northern and western regions of the country. Almost all Scottish Gaelic speakers also speak fluent English.