The earliest known inhabitants of the area were Khoisan hunter-gatherers. They were largely replaced by Wasja-speaking tribes during Bantu migrations. The Sotho-Tswana people colonized the general region of South Africa between the 3rd century and the 11th century.

The present Lesotho (then called Basutoland) emerged as a single polity under the Great King Moshoeshoe I in 1822. Son of Mokhachane, a minor chief of the Bakoteli lineage, Moshoeshoe formed his own clan and became a chief around 1804. Between 1821 and 1823 he and his followers settled at the Butha-Buthe Mountain, joining with former adversaries in resistance against the Lifaqane associated with the reign of Shaka Zulu from 1818 to 1828.

Subsequent evolution of the state hinged on conflicts between British and Dutch colonists leaving the Cape Colony following its seizure from the French-occupied Dutch by the British in 1795, and subsequently associated with the Orange River Sovereignty and subsequent Orange Free State. Missionaries invited by Moshoeshoe I, Thomas Arbousset, Eugene Casalis and Constant Gosselin from the Paris Evangelical Missionary Society, placed at Morija, developed orthography and printed works in the Sotho language between 1837 and 1855. Casalis, acting as translator and providing advice on foreign affairs, helped to set up diplomatic channels and acquire guns for use against the encroaching Europeans and the Korana people.

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The Lesotho Government is a parliamentary or constitutional monarchy. The Prime Minister, Pakalitha Bethuel Mosisili, is head of government and has executive authority. The king serves a largely ceremonial function; he no longer possesses any executive authority and is prohibited from actively participating in political initiatives.

The Lesotho Congress for Democracy (LCD) controls a majority in the National Assembly (the lower house of parliament) with 62 seats. The All Basotho Convention (ABC), a party formed shortly before the poll under the leadership of former foreign minister Tom Thabane, is the main opposition. The Basotho National Party (BNP), the Alliance of Congress Parties (ACP) and the newly formed Basotho Batho Democratic Party (BBDP) and the Basotho Democratic National Party (BDNP) Lesotho are among the other five opposition parties represented.

The ABC has brought a dramatic change in the Lesotho's politics, because of its having won 17, mainly urban, seats out of 80 Constituency seats, only a few months after it was formed in September 2006. Of the 40 Proportional Representation (PR) seats, the National Independent Party (NIP), a parliamentary ally of the ruling party, has the highest number of seats at 21. The Lesotho Workers Party has the next highest number of proportional seats with 10. The BNP is the opposition party with the biggest loss in the February 2007 election with its representation reduced from 21 to 3 seats. A total of 12 political parties are represented in the 120-member parliament.

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Administratively, Lesotho is divided into ten districts, each headed by a district administrator. Each district has a capital known as a camptown.

The districts are further subdivided into 80 constituencies, which consists of 129 local community councils.

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Lesotho covers 30,355 km2 (11,720 sq mi). It is the only independent state in the world that lies entirely above 1,400 metres (4,593 ft) in elevation. Its lowest point of 1,400 metres (4,593 ft) is thus the highest in the world. Over 80% of the country lies above 1,800 metres (5,906 ft). Lesotho is also landlocked and is entirely contained within the country of South Africa.

Because of its altitude, Lesotho remains cooler throughout the year than other regions at the same latitude. Most of the rain falls as summer thunderstorms. Maseru and surrounding lowlands often reach 30 °C (86 °F) in summer. Winters can be cold with the lowlands getting down to −7 °C (19.4 °F) and the highlands to −18 °C (−0.4 °F) at times. Snow is common in the highlands between May and September; the higher peaks can experience snowfalls year-round.

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Lesotho's economy is based on diamonds exported all over the world and water sold to South Africa, manufacturing, agriculture, livestock, and to some extent the earnings of laborers employed in South Africa. Lesotho also exports wool, mohair, clothing, and footwear. One of Levi's jeans manufacturing facilities is located there. Also in Lesotho is one of Russell Athletic plants. Lesotho is geographically surrounded by South Africa and economically integrated with it as well. The majority of households subsist on farming or migrant labor, primarily miners who remain in South Africa for 3 to 9 months. The western lowlands form the main agricultural zone. Almost 50% of the population earns some income through crop cultivation or animal husbandry, with over half the country's income coming from the agricultural sector.

Water and diamonds are Lesotho's significant natural resources. It is utilized through the 21-year, multi-billion-dollar Lesotho Highlands Water Project (LHWP), which began in 1986. The LHWP is designed to capture, store, and transfer water from the Orange River system to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population, and agriculture. Completion of the first phase of the project has made Lesotho almost completely self-sufficient in the production of electricity and generated approximately $40 million (R300 million or 300 million Maloti) annually from the sale of electricity and water to South Africa. The World Bank, African Development Bank, European Investment Bank, and many other bilateral donors financed the project. Lesotho has taken advantage of the African Growth and Opportunity Act (AGOA) to become the largest exporter of garments to the US from sub-Saharan Africa. Exports totaled over $320 million in 2002. Employment reached over 50,000, marking the first time that manufacturing sector workers outnumbered government employees.

The official currency is the loti (plural: maloti), but can be used interchangeably with the South African rand. Lesotho, Swaziland, Namibia, and South Africa also form a common currency and exchange control area known as the Common Monetary Area (CMA). The loti is at par with the rand, while one hundred lisente equal one loti.

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Significant levels of child labor exist in Lesotho, and the country is in the process of formulating an Action Program on the Elimination of Child Labor (APEC).

Lesotho has a population of approximately 1.881 million, according to 2006 Census. The population distribution of Lesotho is 25 percent urban and 75 percent rural. However, it is estimated that annual increase of urban population is 3.5%. Population density is lower in the highlands than in the western lowlands. Although the majority of the population—60.2 percent—is between 15 and 64 years of age, Lesotho has a substantial youth population numbering around 34.8 percent. The annual population growth rate is 0.116%.

Lesotho's ethno-linguistic structure consists almost entirely of the Basotho, a Bantu-speaking people: an estimate of 99.7% of the people identify as Basotho. Other ethnic groups include Europeans, numbering in the thousands, and an estimated 5,000 Chinese. Basotho subgroups include the Bakuena (Kuena), Batloung (the Tlou), Baphuthi (the Phuti), Bafokeng, Bataung (the Tau), Batšoeneng (the tšoene), Matebele, etc. Sesotho. The main language, Sesotho, is also the first official and administrative language, and it is what Basotho speak on an ordinary basis. English is the other official and administrative language.

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