Portugal came into existence as an independent nation on June 24 1128, when Count Afonso of Portugal, Afonso Henriques, defeated in battle his mother, Countess Teresa, and her lover, Fernão Peres de Trava, thereby establishing himself as sole leader. Afonso Henriques proclaimed himself king of Portugal on July 25, 1139, after the Battle of Ourique and was recognized as such in 1143 by Alfonso VII, king of León and Castile, and in 1179 by Pope Alexander III.

Afonso and his successors, aided by military monastic orders, pushed southward to drive out the Moors, as the size of Portugal covered about half of its present area. In 1249, this Reconquista ended with the capture of the Algarve on the southern coast.

In 1373, Portugal made an alliance with England, which is the longest-standing alliance in the world. In the following decades, Portugal spearheaded the exploration of the world and undertook the Age of Discovery. Prince Henry the Navigator, son of King João I, became the main sponsor and patron of this endeavor.

In 1383, the king of Castile, husband of the daughter of the Portuguese king who had died without a male heir, claimed his throne. An ensuing popular revolt led to the 1383-1385 Crisis. A faction of petty noblemen and commoners, led by John of Aviz (later John I), seconded by General Nuno Álvares Pereira, defeated the Castilians in the Battle of Aljubarrota. This celebrated battle is still a symbol of glory and the struggle for independence from neighboring Spain.

In 1415, the Portuguese empire arose when a fleet conquered Ceuta, a prosperous Islamic trade center in North Africa. There followed the first discoveries in the Atlantic: Madeira and the Azores, which led to the first colonization movements.

Throughout the 15th century, Portuguese explorers sailed the coast of Africa, establishing trading posts as they looked for a route to India and its spices, which were coveted in Europe. In 1498, Vasco da Gama finally reached India and brought economic prosperity to Portugal and its then population of one million residents.

In 1500, Pedro Álvares Cabral landed in Brazil and claimed it for Portugal. Ten years later, Afonso de Albuquerque conquered Goa, in India, Ormuz in the Persian Strait, and Malacca in what is now Malaysia. Thus, the Portuguese empire held dominion over commerce in the Indian Ocean and South Atlantic.

Portugal's independence was interrupted between 1580 and 1640. Because the heirless King Sebastian died in battle in Morocco, Philip II of Spain claimed his throne and so became Philip I of Portugal. Although Portugal did not lose its formal independence, it was governed by the same monarch who governed Spain, briefly forming a union of kingdoms; in 1640, John IV spearheaded an uprising backed by disgruntled nobles and was proclaimed king. This was the beginning of the long-lived dynasty of Braganza. By this time, however, the Portuguese empire was already under attack from other countries, specifically Britain and the Netherlands. Portugal began a slow but inexorable decline until the 20th century. This decline was hastened by the independence in 1822 of the country's largest colonial possession, Brazil. This contributed to a period of political chaos and civil war.

In 1910, a revolution deposed the Portuguese monarchy, but chaos continued and considerable economic problems were aggravated by a disastrous military intervention in the First World War, which led to a military coup d'état in 1926. This in turn led to the establishment of a right-wing dictatorship by António de Oliveira Salazar. In the early 1960s, independence movements in the colonies of Angola, Mozambique, and Portuguese Guinea resulted in the Portuguese Colonial War. In 1974, a bloodless left-wing military coup led the way for a modern democracy. Portugal joined the European Union in 1986, and ever since Portugal has engaged in a process of convergence with its EU counterparts.

Portugal has been a member of NATO since 1949, the European Union since 1986, and the Community of Portuguese Language Countries since 1996. It has a friendship alliance and dual citizenship treaty with Brazil. It has good relations with the United States, the United Kingdom, and China (due to Macau), as well as the other European Union countries. Portugal has centuries-old diplomatic ties with Morocco.

The only international dispute concerns the municipality of Olivenza, which Spain received in 1801 under the Treaty of Badajoz and has since administered. Portugal claimed it in 1815 under the Treaty of Vienna. Nevertheless, diplomatic relations between the two countries are cordial.

The armed forces have three branches: Army, Navy, and Air Force. In the 20th century, Portugal engaged in two major military interventions: the First Great War and the Colonial War (1961-1974). Portugal has participated in peacekeeping missions in East Timor, Bosnia, Kosovo, Afghanistan, Iraq, and Lebanon. The draft was abolished in 2003.

As of 2006, 55% of energy production was from coal and fuel power plants. The other 40% was produced by hydroelectrics and 5% by wind energy. The government is channeling $3.8 billion into developing renewable energy sources over the next five years.

The world's first commercial wave farm opened in October 2006 in northern Portugal.

In June 2006, U.S. energy companies GE Energy, PowerLight Corp. and Portuguese renewable energy company Catavento began building the world's largest solar power plant in southeast Portugal.

Transportation was seen as a priority in the 1990s, pushed by the growing use of automobiles and industrialization. The country has a 68,732 km (i.e., 42,708 mi.) network of roads, of which 2,000 km (i.e., 1,240 mi.) are part of 44 motorways.

The two principal metropolitan areas have subway systems: Lisbon Metro and Porto Metro, each with more than 35 km (22 mi) of lines. Construction of a high-speed TGV line connecting Porto with Lisbon and Lisbon with Madrid will begin in 2008; it will replace the Pendolinos. A new Lisbon airport will be built at the same time in Ota.

Portugal has one of the highest mobile phone penetration rates in the world. As of October 2006, 36.8% of households had high-speed Internet services and 78% of companies had Internet access. Most Portuguese watch television through cable (June 2004: 73.6% of households).

The most important airports are in Lisbon, Faro (Algarve), Oporto, Funchal (Madeira), and Ponta Delgada (Azores).

Portugal has developed a specific culture while being influenced by various civilizations that have crossed the Mediterranean or were introduced during the Age of Discovery.

Portuguese literature, one of the earliest Western literatures, developed through text and song. Until 1350, the Portuguese-Galician troubadours spread their literary influence to most of the Iberian Peninsula. Gil Vicente (ca. 1465 - ca. 1536), was one of the founders of both Portuguese and Spanish dramatic traditions. Adventurer and poet Luís de Camões (ca. 1524-1580) wrote the epic poem The Lusiads, with Vergil's Aeneid as his main influence. Modern Portuguese poetry is rooted in neoclassic and contemporary styles, as exemplified by Fernando Pessoa (1888–1935). Modern literature is internationally known through the works of Almeida Garrett, Camilo Castelo Branco, Eça de Queirós, Sophia de Mello Breyner Andresen, António Lobo Antunes, and 1998 Nobel Prize winner, José Saramago, and others.

Portuguese music encompasses a wide variety of genres. The most renowned is fado, a melancholy urban music, usually associated with the Portuguese guitar and saudade, or longing. Internationally notable performers include Amália Rodrigues, Mariza, Mísia, and Madredeus. One of the most notable Portuguese musical groups outside the country, and specially in Germany, is the goth-metal band Moonspell. In addition to fado and folk, Portuguese listen to pop and other modern music. Bands who have international recognition include Blasted Mechanism and The Gift, who were both nominated for an MTV Music Award. Portugal has several music festivals: Zambujeira do Mar, Paredes de Coura, Rock in Rio Lisboa, and SuperBock SuperRock, among others.

Traditional architecture is distinctive. Modern Portugal has given the world renowned architects Eduardo Souto de Moura and Álvaro Siza Vieira. Prominent international figures in visual arts include painters Vieira da Silva and Paula Rego.

Since the 1990s, Portugal has increased the number of public cultural facitilies, in addition to the Calouste Gulbenkian Foundation established in 1956. These include the Belém Cultural Center in Lisbon, Serralves Foundation and the Casa da Música, both in Oporto.

Cuisine is particularly diverse. Recipes for rice, potato, bread, meat, seafood, and fish dishes are staples. The Portuguese have a reputation for loving cod (bacalhau in Portuguese), for which, it is said, there are 365 recipes (i.e, one for each day of the year): pastéis de bacalhau, bacalhau à Brás, and bacalhau à Gomes de Sá are some of the most popular ones. Other fish recipes are popular like grilled sardines and caldeirada. The art of pastry, having its origins in old and rich recipes, is popular. Desserts and cakes, such as Lisbon's pastéis de nata (delicious with strong coffee), Aveiro's ovos-moles, and many others, are appreciated. Portugal has its own adaptation of fast food; one of the most popular is Porto's francesinha. Other recipes include the feijoada, made with pieces of meat, sausages, and beans served with white and dry rice, the cozido à portuguesa, made with various kinds of meat, rice, potatoes and other vegetables, all boiled, and the espetadas.

Wines have been exported since the time of the Romans, who associated Portugal with Bacchus, their god of wine and feasting. Today, the country is known by wine lovers, and its wines have won international prizes. Many famous Portuguese wines are known as some of the world's best: Vinho Verde, Vinho Alvarinho, Vinho do Douro, Vinho do Alentejo, Vinho do Dão, Vinho da Bairrada and the sweet: Port Wine, Madeira wine and the Moscatels of Setúbal and Favaios (Douro). Porto wine is widely exported, followed by Vinho Verde, whose export is increasing rapidly in response to growing international demand.