Portuguese explorers established contacts with Liberia as early as 1461 and named the area Grain Coast because of the abundance of grains of Malegueta Pepper.

In 1663 the British installed trading posts on the Grain Coast, but the Dutch destroyed these posts a year later. There were no further reports of European settlements along the Grain Coast until the arrival of freed slaves in early 1800s.

Liberia, which means "land of the free," was founded by freed slaves from the United States in 1820. These freed slaves, called Americo-Liberians, first arrived in Liberia and established a settlement in Christopolis now Monrovia (named after U.S. President James Monroe) on February 6, 1820. This group of 86 immigrants formed the nucleus of the settler population of what became known as the Republic of Liberia.

Thousands of freed slaves from America soon arrived during the proceeding years leading toward the formation of more settlements culminating into a declaration of independence on July 26, 1847 of the Republic of Liberia. The idea of resettling free slaves in Africa was nurtured by the American Colonization Society (ACS), an organization that governed the Commonwealth of Liberia until independence in 1847. The new Republic of Liberia adopted American styles of life and established thriving trade links with other West Africans.

The formation of the Republic of Liberia was not an altogether easy task. The settlers periodically encountered stiff opposition from African tribes whom they met upon arrival, usually resulting in bloody battles. On the other hand, the newly independent Liberia was encroached upon by colonial expansionists who forcefully took over much of the original territory of independent Liberia.

Liberia's history until 1980 was largely peaceful. For 133 years after independence, the Republic of Liberia was a one-party state ruled by the Americo-Liberian dominated True Whig Party (TWP). Joseph Jenkins Roberts who was born and raised in America became Liberia's first president. The style of government and constitution was fashioned on that of the United States. The True Whig Party dominated all sectors of Liberia from independence until April 12, 1980 when indigenous Liberian Master Sergeant Samuel K. Doe, from the Krahn ethnic group, seized power in a coup d'etat. Doe's forces executed President William R. Tolbert and several officials of his government mostly of Americo-Liberian descent. As a result, 133 years of Americo-Liberian political domination ended with the formation of the People's Redemption Council (PRC).

Doe's government increasingly adopted an ethnic outlook as members of his Krahn ethnic group soon dominated political and military life in Liberia. This caused a heightened level of ethnic tension leading to frequent hostilities between the politically and militarily dominant Krahns and other ethnic groups in the country.

Political parties remained banned until 1984. Elections were held on October 15, 1985, in which Doe's National Democratic Party of Liberia (NDPL) was declared winner. The elections were characterized by widespread fraud and rigging. The period after the elections saw increased human rights abuses, corruption, and ethnic tensions. The standard of living which had been rising in the 1970s declined drastically. On November 12, 1985, former Army Commanding Gen. Thomas Quiwonkpa invaded Liberia by way of neighboring Sierra Leone and almost succeeded in toppling the government of Samuel Doe. Members of the Krahn-dominated Armed Forces of Liberia repelled Quiwonkpa's attack and executed him in Monrovia.

On December 24, 1989, a small band of rebels led by Doe's former procurement chief, Charles Taylor invaded Liberia from the Ivory Coast. Taylor and his National Patriotic Front rebels rapidly gained the support of Liberians because of the repressive nature of Samuel Doe and his government. Barely 6 months after the rebels first attacked, they had reached the outskirts of Monrovia.

The Liberian Civil war which was one of Africa's bloodiest, claimed the lives of more than 200,000 Liberians and further displaced a million others into refugee camps in neighboring countries. The Economic Community of West African States (ECOWAS) intervened and succeeded in preventing Charles Taylor from capturing Monrovia. Prince Johnson, who had been a member of Taylor's National Patriotic Front of Liberia (NPFL) but broke away because of policy differences, formed the Independent National Patriotic Front of Liberia (INPFL). Johnson's forces captured and killed Doe on September 9, 1990.

An Interim Government of National Unity (IGNU) was formed in Gambia under the auspices of ECOWAS in October 1990 and Dr. Amos C. Sawyer became President. Taylor refused to work with the interim government and continued war. By 1992, several warring factions had emerged in the Liberian civil war, all of which were absorbed in the new transitional government. After several peace accords and declining military power, Taylor finally agreed to the formation of a five-man transitional government.

After considerable progress in negotiations conducted by the United States, United Nations, Organization of African Unity (now the African Union), and the Economic Community of West African States (ECOWAS), disarmament and demobilization of warring factions were hastily carried out and special elections were held on July 19, 1997 with Charles Taylor and his National Patriotic Party emerging victorious. Taylor won the election by a large majority, primarily because Liberians feared a return to war had Taylor lost.

For the next 6 years, the Taylor government did not improve the lives of Liberians. Unemployment and illiteracy stood above 75%, and little investment was made in the country's infrastructure. Rather than work to improve the lives of Liberians, Taylor supported the bloody Revolutionary United Front in Sierra Leone, fomenting unrest and brutal excesses in the region, and leading to the resumption of armed rebellion from among Taylor's former adversaries.

Liberia is still trying to recover from the ravages of war. Six years after the war, pipe-borne water and electricity are still unavailable, and schools, hospitals, roads, and infrastructure remain derelict. On June 4 in Accra, Ghana, the Economic Community of West African States (ECOWAS) facilitated the inauguration of peace talks among the Government of Liberia, civil society, and the rebel groups, “Liberians United for Reconciliation and Democracy” (LURD) and, “Movement for Democracy in Liberia” (MODEL). LURD and MODEL largely represent elements of the former ULIMO-K and ULIMO-J factions that fought Taylor during Liberia’s previous civil war. That same day, the Chief Prosecutor of the Special Court for Sierra Leone issued a press statement announcing the opening of a sealed March 7 indictment of Liberian President Charles Taylor for “bearing the greatest responsibility” for atrocities in Sierra Leone since November 1996. By July 17, the Government of Liberia, LURD, and MODEL signed a cease-fire that envisioned a comprehensive peace agreement within 30 days. The three combatants subsequently broke that cease-fire repeatedly, which resulted in bitter fighting that eventually reached downtown Monrovia.

On August 11, under intense U.S. and international pressure, President Taylor resigned office and departed into exile in Nigeria. This move paved the way for the deployment by ECOWAS of what became a 3,600-strong peacekeeping mission in Liberia (ECOMIL). Since then, the United States has provided limited direct military support and $26 million in logistical assistance to ECOMIL and another $40 million in humanitarian assistance to Liberia. On August 18, leaders from the Liberian Government, the rebels, political parties, and civil society signed a comprehensive peace agreement that laid the framework for constructing a 2-year National Transitional Government of Liberia, effective October 14. On August 21, they selected businessman Gyude Bryant as Chair and Wesley Johnson as Vice Chair of the National Transitional Government of Liberia (NTGL). Under the terms of the agreement the LURD, MODEL, and Government of Liberia each select 12 members of the 76-member Legislative Assembly (LA). The NTGL was inducted on October 14 and will serve until January 2006, when the winners of the scheduled October 2005 presidential and congressional elections take office.