After the people fighting for their rights on the street and the death of Evan Naseem, MDP declared its existence in exile from Sri Lanka on 10 November 2003.

On 2 June 2005, the members of the People's Majlis unanimously voted to legally recognize political parties.

The MDP subsequently submitted its registration on 26 June 2005, becoming the first political party to be registered in the Second Republic of Maldives.

In August 2007, voters decided via referendum that the Maldives' new constitution should provide for a presidential system of government (vice parliamentary).

In accordance with the new constitution ratified by then-President Gayoom on 7 August 2008, the first round of presidential elections was held on 10 October 2008.

Due to no single candidate receiving 50% of the vote, a second round was held on 29 October between President Gayoom and Mohamed Nasheed.

Nasheed also accused the President of enacting policies contrary to the founding principles and ideology of the party, occasionally voting against bills sent by the MDP government in parliament.

[13] The results revealed that President Ibrahim Mohamed Solih won the primary election with 61.10% of the vote.

The faction on several occasions violated the party's whip line and launched a no-confidence motion against multiple government ministers in Ibrahim Mohamed Solih's cabinet.