Timor was settled over time by various Papuan and Austronesian peoples, which created a diverse mix of cultures and languages linked to both Southeast Asia and Melanesia.

The subsequent Indonesian occupation was characterised by extreme abuses of human rights, including torture and massacres, a series of events named the East Timor genocide.

[24][25] While information is limited about the political system of Timor during this period, the island had developed an interconnected series of polities governed by customary law.

These polities were numerous and saw shifting alliances and relations, but many were stable enough that they survived from initial European documentation in the 16th century until the end of Portuguese rule.

[27] Timor was included in Southeast Asian, Chinese, and Indian trading networks by the fourteenth century, exporting sandalwood,[28] honey, and wax.

[29]: 90  Effective European occupation in the east of the island only began in 1769, when the city of Dili was founded, although actual control remained highly limited.

[31] A definitive border between the Dutch and Portuguese parts of the island was established by the Permanent Court of Arbitration in 1914 and remains the international boundary between the successor states Indonesia and Timor-Leste, respectively.

[32] For the Portuguese, East Timor remained little more than a neglected trading post, with minimal investment in infrastructure and education, until the late nineteenth century.

[27] At the beginning of the twentieth century, a faltering domestic economy prompted the Portuguese to extract greater wealth from its colonies, which was met with East Timorese resistance.

[36] Following the 1974 Portuguese revolution, Portugal effectively abandoned its colony in Timor, and civil war between East Timorese political parties broke out in 1975.

A clear vote for independence was met with a punitive campaign of violence by East Timorese pro-integration militias supported by elements of the Indonesian military.

In response, the Indonesian government allowed a multinational peacekeeping force, INTERFET, to restore order and aid East Timorese refugees and internally displaced persons.

[56][57] In June 2007, Gusmão ran in the parliamentary elections and became prime minister at the head of the National Congress for Timorese Reconstruction (CNRT) party.

In February 2008, Ramos-Horta was critically injured in an attempted assassination; Prime Minister Gusmão also faced gunfire separately but escaped unharmed.

[65]: 16 [71] The National Congress for Timorese Reconstruction became the main opposition to Fretilin, following its establishment to allow Xanana Gusmão to run for Prime Minister in the 2007 parliamentary elections.

The dominance of Australian hard power led Timor-Leste to utilise public diplomacy and forums for international law to push their case.

[79][80] The dispute was resolved in 2018 following conciliation procedures[81] before the Permanent Court of Arbitration, when the two states established by treaty a maritime boundary between them along with an agreement on natural resource revenues.

In most proposals, there were no specific provisions for suco-level governance, and they were expected to continue to exist as mostly traditional spaces, identifying communities rather than being part of the civil administration.

[90]: 4, 7  The isolated Oecusse municipality, which has a strong identity and is fully surrounded by Indonesian territory, is specified by Articles 5 and 71 of the 2002 constitution to be governed by a special administrative policy and economic regime.

[87] Due to its small population, which the government states is insufficient to elect a Municipal Assembly, there are plans to convert Atauro to a Special Economic Zone similar to Oecusse.

[101]: 5  The country is vulnerable to flooding and landslides that occur as a result of heavy rain, especially when rainfall levels are increased by the La Niña effect.

[120]: 260 Private sector development has lagged due to human capital shortages, infrastructure weakness, an incomplete legal system, and an inefficient regulatory environment.

[131][132] The word Maubere [de] formerly used by the Portuguese to refer to native East Timorese and often employed as synonymous with the illiterate and uneducated, was adopted by Fretilin as a term of pride.

[96]: 49  With this immense local variation in mind, there is a broad cultural and identity distinction between the east (Baucau, Lautém, and Viqueque municipalities) and the west of the country, a product of history more than it is of linguistic and ethnic differences,[96]: 45–47  although it is very loosely associated with the two language groups.

[137]: 136  Aside from Tetum, Ethnologue lists the following indigenous languages: Adabe, Baikeno, Bunak, Fataluku, Galoli, Habun, Idaté, Kairui-Midiki, Kemak, Lakalei, Makasae, Makuv'a, Mambae, Nauete, Tukudede, and Waima'a.

Other Malayo-Polynesian languages with native speakers of more than 40,000 are Mambai in the central mountains south of Dili, Baikeno in Oecusse, Kemak in the north-west interior, and Tokodede on the northwest coast.

[164] The many cultures within Timor-Leste stem from the several waves of Austronesian and Melanesian migration that led to the current population, with unique identities and traditions developing within each petty kingdom.

[96]: 47–49  The architectural style of these houses varies between different parts of the country, although following widespread destruction by Indonesian forces many were rebuilt with cheap modern materials.

Traditional leaders, who stem from historically important families, retain key roles in administering justice and resolving disputes through methods that vary between communities.

Radio is the most popular form of mass media, due to various reasons, such as a low literacy rate, the cost of newspapers relative to the average income, and it being broadcast in regional languages.