However the true test of an independent nation did not happened until  1385 when Joao Mestre de Avis (John of Avis) with the help of legendary supreme constable Nuno Alvares Pereira defeated the Castiliansat the epic Aljubarrota battle where the Castilians outnumbered the Portuguese 6:1. John I (Dom Joao I) was crowned King of Portugal. John I along with his sons, Duarte (to became the King in succession), Henry The Navigator, and Afonso started the "Golden Decades" of worldwide discoveries (15th and 16th centuries).

Following its heyday as a world power during the 15th and 16th centuries, Portugal lost much of its wealth and status with the destruction of Lisbon in a 1755 earthquake, occupation during the Napoleonic Wars, and the independence in 1822 of Brazil as a colony.

A 1911 revolution deposed the monarchy with the decapitation of King Manuel I and his son.

For most of the next six decades, repressive governments ran the country. Antonio Salazar a right wing fascist ran the country with an iron fist and a austere economic plan which slowly buried  Portugal deeper and deeper on its third world status within Europe. Salazar also held on to the colonies of Angola, Mozambique and Guinea, having contributed not just to the deplorable state of those Countries, but also to a colonial wars which killed hundreds of thousands of Portuguese man.

In 1974, a left-wing military coup installed broad democratic reforms, which had the opposite effect. Too much freedom too quickly placed the country in total "democratic chaos" with union bosses, corrupt politicians, and left-wing and right-wing extremists taking turns on plundering the country, with disastrous economic and labor plans. Starting in 1976 Portugal granted independence to all of its African colonies, and a wave of refugees were poorly assimilated on a society that does not value ethnicity to this day.

After successive governments led by communists, socialists and social-democrats continue its miss-management of Portugal, at last the social-democratic government of Prime-minister Cavaco da Silva brought prosperity and double digit economic growth in the late 80's and early 90's. It helped that the Portugal joined the EC in 1986. Joining the EC, gave the country a boost with a flurry of grants and investments that contributed to new roads, and overall upgrade of a dilapidated infrastructure.

However with the disastrous miss-management of the Socialist government of Prime-minister Antonio Guterres, and the Social-democratic government of Prime-minister Jose Manuel Barroso (promptly promoted to President of the European Commission) and his successor Santana Lopes, the country embarked on a 0% growth rate with a growing economic deficit. Added to this is the cessation of funds from the EC without a source of replacement.

In 2005 President Sampaio dismissed the government and called new elections. The Socialists were brought to power with the majority of vote and new Prime-Minister Jose Socrates impact remains to be seen.

Mario Soares, a popular Prime-Minister and President decades ago,  came out of retirement to run for President in 2006 against his political nemesis Cavaco da Silva. Cavaco da Silva soundly beat Soares becoming the current president of Portugal.

Portugal is a founding member of NATO.