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In the mid-seventeenth century, the Dutch, who had replaced the Portuguese as the dominant power in Ceylon, established hegemony over Maldivian affairs without involving themselves directly in local matters, which were governed according to centuries-old Islamic customs.

Maldives gained independence in 1965. The British, who had been Maldives' last colonial power, continued to maintain an air base on the island of Gan in the southernmost atoll until 1976. The British departure in 1976 almost immediately triggered foreign speculation about the future of the air base; the Soviet Union requested use of the base, but Maldives refused.

The Second Republic was proclaimed in November 1968 under the presidency of Ibrahim Nasir, who had increasingly dominated the political scene. Under the new constitution, Nasir was elected indirectly to a four-year presidential term by the Majlis (legislature). He appointed Ahmed Zaki as the new prime minister.

In 1978 Maldives joined the International Monetary Fund and the World Bank. Tourism also gained in importance to the local economy, reaching more than 120,000 visitors in 1985. The local populace appeared to benefit from increased tourism and the corresponding increase in foreign contacts involving various development projects.

In 1957 the new prime minister, Ibrahim Nasir, called for a review of the agreement in the interest of shortening the lease and increasing the annual payment. But Nasir, who was theoretically responsible to then sultan Muhammad Farid Didi, was challenged in 1959 by a local secessionist movement in the southern atolls that benefited economically from the British presence on Gan. This group cut ties with the Maldives government and formed an independent state with Abdulla Afif Didi as president.

The Maldivians assigned Muhammad Thakurufaanu as their Sultan. The chronicles report him to have ruled wisely, being just and considerate, protecting the poor, and even solicitous for the people’s interests. He was the first Maldivian king to form the Ashkaru (a unified military body). Muhammed Thakurufaanu died a natural death on th 26th of August 1585.

The Maldives hold the record for being the flattest country in the world, with a maximum altitude of only 2.3 metres. Although there have been reports of rising sea levels threatening the islands, the sea level has actually lowered in recent decades.

Heyerdahl's research indicates that as early as 2,000 B.C. Maldives lay on the maritime trading routes of early Egyptian, Mesopotamian, and Indus Valley civilizations. Heyerdahl believes that early sun-worshipping seafarers, called the Redin, first settled on the islands.

Theravada Buddhism originating from Ceylon (present-day Sri Lanka) became the dominant religion of the people of Maldives. Some scholars believe that the name "Maldives" derives from the Sanskrit maladvipa, meaning "garland of islands."

Caused by the 2004 Indian Ocean earthquake, a tsunami in the Indian Ocean saw parts of Maldives be covered by sea water and many people homeless. After the disaster, cartographers are planning to redraw the maps of the islands due to alterations by the tsunami. The people and government are worried that Maldives would be wiped out from the map eventually.

When the tsunami hit, two-thirds of the capital city Malé was flooded during the early hours of the day. Outlying low-level atolls were badly affected and some low lying islands, including some of the major resorts, were completely submerged during the high tide.