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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.

From 1652 to 1658, Scotland formed an integral part of the Puritan-governed Commonwealth, under English control but gaining equal trading rights. Upon its collapse, nominal independence returned with the restoration of Charles II to the throne. Scotland regained its parliament, but the English Navigation Acts prevented the Scots from sharing its commercial success to escape impoverishment. A formal frontier between the two countries was re-established, with customs duties which, while they protected Scottish cloth industries from cheap English imports, also denied access to English markets for Scottish cattle on the hoof or Scottish linens (Braudel 1984 p 370).

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.

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.

At one stage, Scottish peers were entitled to elect sixteen representative peers to the House of Lords. In 1963, the Peerage Act was passed, allowing every Scottish peer to sit in the House of Lords. However, since the current Labour government's reforms of that house this is no longer the case and hereditary Scottish peers have to stand for election from amongst all eligible peers to sit in the house as part of a group of 92 entitled to do so.

The patron saint of Scotland is Saint Andrew, and Saint Andrew's Day is celebrated in the country on 30 November.

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.

In 1512 under a treaty extending the Auld Alliance, all nationals of Scotland and France also became nationals of each other's countries, a status not repealed in France until 1903 and which may never have been repealed in Scotland. However a year later, the Auld Alliance had more disastrous effects when James IV was required to launch an invasion of England to support the French when they were attacked by the English under Henry VIII. The invasion was stopped decisively at the battle of Flodden Field during which the King, many of his nobles, and over 10,000 troops — The Flowers of the Forest — were killed. The extent of the disaster impacted throughout Scotland because of the large numbers killed, and once again Scotland's government lay in the hands of regents.

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.