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Much of Scotland (particularly the West Central Belt around Glasgow) has experienced problems owing to the religious divide between Presbyterians and Catholics. Many Scottish Catholics maintain that, because many Establishment and business figures have links to the Orange Order, sectarianism is deeply rooted in Scottish society. This problem has historically manifested itself in a number of ways, particularly in employment and in football fanaticism. The problems associated with sectarianism in Scotland have diminished markedly compared with the past, although issues do remain to a certain degree. Scottish police have recently moved to restrict the number of Orange parades.

The Church of Scotland (often referred to as The Kirk) functions as the national church. It differs from the Church of England in that it has a Presbyterian form of church governance, not subject to state control. This goes back to the Scottish experience of reformation, initiated in 1560 by John Knox. The Scottish Reformation in essence took place at a grassroots level, and the Scots chose Presbyterianism as their method of church government. This differs from the situation in England, where Henry the Eighth personally unleashed the English Reformation and chose the Episcopal system that survives to this day in the Church of England.

Scotland retains its own unique legal system, based on Roman law, which combines features of both civil law and common law. The terms of union with England specified the retention of separate systems. The barristers being called advocates, and the judges of the high court for civil cases are also the judges for the high court for criminal cases. Scots Law differs from England's common law system.

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.

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.

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.

Church of England broke with Catholicism primarily for political reasons. Thus they replaced very little traditional Catholic theology, except to substitute the Crown for the Pope as the head of the Church. The Scots on the other hand were primarily Presbyterian, a movement which was the result of a strong theological rejection of certain Catholic teachings. In particular they were sceptical of the authority of the Pope and priesthood generally, which they rejected in favour of the priesthood of all believers. This doctrine was seen by both sides as radically undermining the authority not just of the priestly class, but of the aristocracy since it was essentially democratic.