According to data from the United Nations Office on Drugs and Crime (UNODC), Shan State is the region that produces the most opium in Myanmar, though production has declined in recent years.

The newly founded Shan States were multi-ethnic, and included other ethnic minorities such as the Chin, the Kachin, the Wa, the Ta'ang, the Lisu, the Lahu, the Pa O, and the Kayah.

[10]: 108–109  The Shan states were reduced to the status of governorships, but the Saophas were permitted to retain their royal regalia and their feudal rights over their own subjects.

[citation needed][dubious – discuss] The present-day boundary of southern Shan State vis-à-vis Thailand was formed shortly thereafter.

Shans were a major part of Burmese forces in the First Anglo-Burmese War of 1824–1826, and fought valiantly—a fact that the British commanders acknowledged.

The Shan states—especially that east of the Salween River, were essentially autonomous entities, paying token tribute to the king.

Chinese Kuomintang forces who illegally entered Burmese territory came down to northeastern Shan states to face the Japanese.

[15] After the war, the British returned, while many Chinese KMT forces stayed inside Burmese Shan states.

Soon after gaining independence in January 1948, the central government led by U Nu faced several armed rebellions.

Driven out by the Chinese Communist forces, Nationalist KMT armies planned to use the region east of the Salween River as a base from which to regain their homeland.

Though Shan leaders promised not to exercise the right, the Burmese army led by Gen. Ne Win thought the proposal was secessionist.

[13]: 274  Gen. Ne Win's coup d'état in 1962 brought an end to the Burmese experiment with democracy and with it, the call for greater autonomy for ethnic minorities.

By the early-1960s, eastern Shan State festered with several insurgencies and warlords, and it emerged as a major opium-growing area, part of the so-called Golden Triangle.

Major forces consisted of the SSA and the Communist Party of Burma (CPB), as well as those of the drug lords Khun Sa, and Lo Hsing Han.

[13]: 299 In the late-1980s and 1990s, the military government signed ceasefire agreements with 17 groups, including all major players in Shan State.

Today, the 20,000-strong United Wa State Army (UWSA) is the largest armed group, and is heavily involved in the narcotics trade.

[19][20][dubious – discuss] Chinese investment in the state has funded everything from hydro power and mining projects to rubber plantations, logging, and wildlife trade.

[25] Sai Mauk Kham (aka Maung Ohn), one of the two vice presidents of Myanmar (2011–2015), was elected from Shan State No.

[28] Following the 2021 coup and the ensuing civil war, Shan State saw fierce fighting between the military junta and the alliance of ethnic armed rebel groups.

In November 2023, the rebels launched an offensive which overran much of Shan State, taking multiple towns, military outposts, and border crossings with China.

A severe magnitude 6.8 earthquake struck in Tarlay, Tachileik Township, the eastern part of Shan State, on 24 March 2011.

ၸွမ်ပိဝ်သမ်ႉၸၼ်ႇတႃႇ လိူၼ်ၶမ်းၸဝ်ႈၸၵ်ႉၵျႃႇ ၸၢတ်ႈႁဝ်းမီးတေႇၸႃႇ ၽွမ်ႉပဵင်းၸႂ်ဝႃႇၸႃႇ သူၵဝ်ႁဝ်းပဵၼ်ၽူႈမီးၸႂ်သၸ်ၸႃႇ We fly our mighty flag with grace, Adorned in three, the golden moon shines, We join together, our hearts and minds, Our nation, abundant in riches have we, Forever, we are united and free."

The Lisu people are numerous in the Northern Shan State, in the townships of Mongmit, Hsipaw, Kyaukme, Namhsan, Namhpaka, Kutkai, Namtu, Lashio, Hopang, and Tangyan, as well as the Kokang region.

The Jingpo people are numerous along the Chinese border in the Northern Shan State, in the townships of Namkham, Muse, Namhpaka, Kutkai, Mungmyit Kodawng, Kengtung, and Lashio.

[citation needed] There is a dwindling population of Anglo-Burmese in major hill stations, such as Kalaw and in Taunggyi, a hold-over from the colonial period.

[41] Minority religious communities include Christians (9.8%), Muslims (1%), Hindus (0.1%), and animists (6.6%) who collectively comprise the remainder of Shan State's population.

Shan State is known for its garden produce of all sorts of fresh fruit and vegetables thanks to its temperate and sunny climate.

Drug trafficking is controlled by local warlords in partnership with foreign organized crime groups, some of whom have private armies amounting to thousands of soldiers.

[44][45] Much of the methamphetamine (ya ba) that ends up across the Mekong and wider Asia Pacific region is produced in Shan as well.

[49][50] The construction project of Sino-Burma pipelines of oil and gas that passes through northern part of Shan State was started in September 2010 and was finished in June 2013.