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Scotland's location on the north-western periphery of Europe did not mean the country had a small part in the Second World War. October 1939 saw naval bases in Scotland taking the first German attacks on Britain, both submarine and bomber attacks on Scapa Flow and raids on Rosyth which met with RAF fighters getting their first successes over Britain downing bombers into the Firth of Forth and onto East Lothian. The shipyards and heavy engineering factories in Glasgow and Clydeside played a key role in the war effort, and soon became targets for the Luftwaffe. The town of Clydebank in particular suffered great destruction and loss of life during the blitz. The Highlands again provided a disproportionate number of troops for the war effort. Many thousands of Commandos and resistance fighters received training in the harsh conditions of the Lochaber mountains.

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

The Parliament is elected with a Proportional Representation electoral system, namely, the Additional Members System. This is unlike Westminster which is still elected by the First Past the Post method. It is elected every four years and contains 129 members (referred to as MSPs).

The traditional political divides of left and right have also intersected with arguments over devolution, which all the UK-wide parties have supported to some degree throughout their history (although both Labour and the Conservatives have swithered a number of times between supporting and opposing it). However, now that devolution has occurred, the main argument about Scotland's constitutional status remains between those who support Scottish independence and those who oppose it. Recent trends indicate, according to the State of the Nation Poll 2004, that 66% of Scots would like the Scottish Parliament to have more powers, while only 2% would like to see the powers returned to Westminster.

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.

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.

During the 16th century, Scotland became embroiled in the throes of the Protestant Reformation. John Knox stood out as the primary figure in this battle. A disciple of John Calvin, Knox, waged fierce battles with the forces of Catholic orthodoxy and eventually converted the country to Presbyterianism. Only the most distant parts of the Highlands retained a taste for older forms. Presbyterianism first gained a foothold in 1556 but it didn't really get going until John Knox's firebrand oratory started stirring people up, most notably in Perth, when he roused the townsfolk so much that a mob scoured the countryside for Catholics after one of his sermons, destroying the old abbey at Scone in the process. Within a few years Parliament had legislated for a National Presbyterian church, the Catholic Queen had fled, Scotland had Protestant England rather than Catholic France as its main ally, and firm Presbyterian tutors were in charge of the upbringing of the infant King.

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.

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.

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.

In 1468 the last great acquisition of Scottish territory occurred when James III married Margaret of Denmark, receiving the Orkney Islands and the Shetland Islands in payment of her dowry.

Scotland has a high proportion of irreligious / atheists, the second highest type of (un)belief in the population.

Tied as it was to the health of the British Empire, Scotland suffered after the First World War as it had gained beforehand. In the Highlands, which, for cultural reasons, had provided a disproportionate number of recruits for the British army, a whole generation of young men were lost, and many villages and communities suffered greatly. In the Lowlands, particularly Glasgow, the terrible working and living conditions for the industrial workers, many of whom did not agree with the motives of the war, led to industrial and political unrest. John MacLean became a key political figure in Red Clydeside and on Bloody Friday January 31st 1919, the British Government was so fearful of a revolutionary uprising in Glasgow that tanks and soldiers were stationed in George Square.

Most Scottish industry and commerce is concentrated in a few large cities on the waterways of the central lowlands. Edinburgh, on the Firth of Forth, is a cultural centre, the capital of Scotland, and one of the the top financial centres in Europe. Glasgow, one of the largest cities in the UK, lies on the Clyde; it is Scotland's leading seaport and was once a centre of shipbuilding and it supports numerous light industries. Although heavy industry has declined, the high-technology Silicon Glen corridor has developed between Glasgow and Edinburgh. Tourism is also very important.

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.