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After World War II Scotland's economic situation became progressively worse until the 1970s, and only began to turn around after the discovery and development of North Sea oil and gas. During this period the Scottish National Party refocused their arguments for Scottish independence around their "It's Scotland's Oil" campaign.

HM Queen Elizabeth II, head of state of the United Kingdom, is descended from King James VI of Scotland, the first Scottish monarch to also be King of England (James I of England from 1603). While some controversy has simmered amongst the Scottish public over her official title since her coronation (many believe that, being the first Queen Elizabeth of Scotland, she should use the style "Elizabeth I"), the courts of Scotland have confirmed "Elizabeth II" as her official title. She has said that in the future monarchs will follow the international ordinal tradition that, where a monarch reigns in a number of non-independent territories (or independent territories that agree to share a monarch) that each have a differing number of previous monarchs of the same name, the highest ordinal used in any of the territories is the one used across all.

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.

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.

The largest political party operating in Scotland is the Labour Party. They replaced the Liberals as Scotland's main political force in the early twentieth century and traditionally represent the interests of workers and trade-unionists. They currently operate as the senior partners in a coalition Scottish Executive.

Islam is the largest non-Christian religion in Scotland, although its numbers remain very small.

Scotland also has its own unique family of languages and dialects, helping to foster a strong sense of "Scottish-ness". An organisation called Iomairt Cholm Cille has been set up to support Gaelic-speaking communities in both Scotland and Ireland and to promote links between them.

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.

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.

Scotland, in the geographical sense it has retained for nearly a millennium, completed its expansion by the gradual subsumation of the Britons' kingdom of Strathclyde into Alba. In 1034, Duncan I, descended from Irish Ui Neill monastery protectors and appointed to the crown of Strathclyde some years earlier, inherited Alba from his maternal grandfather, Malcolm II. With the exception of Orkney, the Western Isles, Caithness and Sutherland, which had come under the sway of the Norse, Scotland stood unified.