Which country is the world's second-smallest by area?

Monaco is the world's second-smallest country by area, covering roughly 2.08 square kilometres.

This independent principality occupies a narrow strip on the French Riviera beside the Mediterranean Sea. The House of Grimaldi has ruled Monaco for much of its modern history, beginning with the capture of the fortress at Monaco in 1297. Monaco became a constitutional monarchy in the twentieth century.

Despite its tiny territory, Monaco is a major financial, tourism and sporting center. Monte Carlo is especially associated with the casino, luxury tourism and the Monaco Grand Prix, held on a demanding street circuit through the principality.

Monaco is often confused with Monte Carlo, but they are not equivalent names. Monaco is the sovereign country, while Monte Carlo is one of its administrative areas. France surrounds Monaco on three sides, and the Mediterranean forms its southern boundary.