Monaco has been governed under a constitutional monarchy since 1911, with the Sovereign Prince of Monaco as head of state. The executive branch consists of a Prime Minister as the head of government, who presides over the other five members of the Council of Government. Until 2002, the Prime Minister was a French citizen appointed by the prince from among candidates proposed by the Government of France; since a constitutional amendment in 2002, the Prime Minister can be French or Monégasque.On 1 September 2020, Prince Albert II appointed a French citizen, Pierre Dartout, to the office.

Under the 1962 Constitution of Monaco, the prince shares his veto power with the unicameral National Council. The 24 members of the National Council are elected for five-year terms; 16 are chosen through a majority electoral system and 8 by proportional representation. All legislation requires the approval of the National Council, which is dominated by the conservative Rally and Issues for Monaco (REM) party which holds 20 seats. Union Monégasque holds three seats while Renaissance holds one seat. The principality's city affairs are directed by the Communal Council, which consists of 14 elected members and is presided over by a mayor. Georges Marsan has been mayor since 2003. Unlike the National Council, communal councillors are elected for four-year terms and are strictly non-partisan; however, oppositions inside the council frequently form.

The wider defence of the nation is provided by France. Monaco has no navy or air force, but on both a per-capita and per-area basis, Monaco has one of the largest police forces (515 police officers for about 38,000 people) and police presences in the world. Its police includes a special unit which operates patrol and surveillance boats jointly with the military. Police forces in Monaco are commanded by a French officer.

There is also a small military force. This consists of a bodyguard unit for the prince and his palace in Monaco-Ville called the Compagnie des Carabiniers du Prince (Prince's Company of Carabiniers); together with the militarised, armed fire and civil defence corps (Sapeurs-Pompiers) it forms Monaco's total forces. The Compagnie des Carabiniers du Prince was created by Prince Honoré IV in 1817 for the protection of the principality and the princely family. The company numbers exactly 116 officers and men; while the non-commissioned officers and soldiers are local, the officers have generally served in the French Army. In addition to their guard duties as described, the carabiniers patrol the principality's beaches and coastal waters.

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