One of the three major parties, the DP sits on the centre to centre-right,[7][8][9][10][11][12] holding moderate market liberal views combined with a strong emphasis on civil liberties, human rights, and internationalism.

The party's stronghold is around Luxembourg City,[14] where it has held the mayorship for all but 7 years since the end of World War II.

In Gaston Thorn and Xavier Bettel, the DP has provided the only Prime Ministers of Luxembourg since 1945 not to be affiliated with the CSV (1974–1979 and 2013–2023).

[15] Although the party traces its history back to the foundation of the Liberal League in 1904, it was founded in its current form on 24 April 1955.

[16] In that year's election, the party benefited from a tide of moderates shifting from an increasingly radical LSAP,[16] returned to 11 seats, and consequently entered into government with the CSV under Prime Minister Pierre Werner.

The DP remained in coalition with the CSV until 1974, when it experienced a surge in support in the 1974 general election, to 22.2% of the vote and 14 seats.

[17] Surprisingly, in the negotiations, the DP got the upper hand, securing the most ministerial positions and departments, as well as the premiership itself under Gaston Thorn.

[21] In 1977, the government abandoned plans to build a nuclear power plant at Remerschen,[21] of which the DP had been the primary advocate.

[23] The DP lost one seat, standing on 14, whilst the resurgence of the LSAP meant it overtook the Democratic Party once again.

This allowed it to displace the LSAP as the CSV's coalition partner, with Lydie Polfer as Deputy Prime Minister.

[26] The 2018 general election saw the DP lose a seat, but the three-party coalition was able to maintain its majority under the Bettel II Government.

The party became a junior coalition partner to the CSV, with Bettel becoming Deputy Prime Minister in the Frieden-Bettel Government.

[22] Indicating its priorities, when in government, the DP has usually or always controlled ministries in charge of Transport, Public Works, the Middle Class, the Civil Service, and Energy.

[29] The DP has led the CSV and LSAP in becoming more internationalist in outlook, focusing on the European Union, environmentalism, and advocacy of human rights abroad.

[33] The party puts great emphasis on the role of the United Nations, and Thorn served as President of the UN General Assembly.