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The 1988 coup had been headed by a once prominent Maldivian businessperson named Abdullah Luthufi, who was operating a farm on Sri Lanka. Ex-president Nasir denied any involvement in the coup. In fact, in July 1990, President Gayoom officially pardoned Nasir in absentia in recognition of his role in obtaining Maldives' independence.

After a coup attempt in 1988, mercenaries quickly gained the nearby airport on Hulele, but failed to capture President Gayoom, who fled from house to house and asked for military intervention from India, the United States, and Britain. Indian prime minister Rajiv Gandhi immediately dispatched 1,600 troops by air to restore order in Malé. Less than twelve hours later, Indian paratroopers arrived on Hulele, causing some of the mercenaries to flee toward Sri Lanka in their freighter.

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.

On 26 December 2004 the Maldives were devastated by a tsunami following the 2004 Indian Ocean earthquake. The Maldives' shallow coastal waters reduced the destructive impact, preventing the waves from reaching much more than 1.2 - 1.5 meters in height. Despite this, the archipelago's low lying nature (one of the lowest lying countries on Earth) meant that nearly all of the country was swamped.

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.

The early history of the Maldives is obscure. According to Maldivian legend, a Sinhalese prince named Koimale was stranded with his bride-daughter of the king of Sri Lanka-in a Maldivian lagoon and stayed on to rule as the first sultan.

Elected to replace Ibrahim Nasir for a five-year presidential term in 1978 was Maumoon Abdul Gayoom, a former university lecturer and Maldivian ambassador to the United Nations (UN). The peaceful election was seen as ushering in a period of political stability and economic development in view of Gayoom's priority to develop the poorer islands.

The interest of Middle Eastern peoples in Maldives resulted from its strategic location and its abundant supply of cowrie shells, a form of currency that was widely used throughout Asia and parts of the East African coast since ancient times. Middle Eastern seafarers had just begun to take over the Indian Ocean trade routes in the tenth century A.D. and found Maldives to be an important link in those routes.

Maldives's twenty-year period of authoritarian rule under Ibrahim Nasir abruptly ended in 1978 when he fled to Singapore. A subsequent investigation revealed that he had absconded with millions of dollars from the state treasury.