In August 1919, Uruguay recognized Finland's independence and in March 1935 both nations established diplomatic relations.

In 2007, UPM, a Finnish pulp company, opened a mill in Fray Bentos, Uruguay just across the river from Argentina.

Besides the issue of pollution, Argentina claimed that the Uruguayan government had not asked for permission to build the mill.

[1] In September 2014, President José Mujica paid a visit to Finland, the first by an Uruguayan head-of-state.

In February 2017, Uruguayan President Tabaré Vázquez paid a state visit to Finland.