In modern politics as well as international relations, the most significant unit is referred to as the ‘state’ or more often the ‘nation state’. While the crisis of the nation state has been a staple in discussions on politics since the late twentieth century, there is no doubt it remains the most powerful unit/actor in politics in the first half of the twenty-first century. This chapter examines what the nation state is, and how it has evolved to occupy such a prominent position in our life. It also highlights various challenges that the nation state faces in the contemporary world, particularly in response to the increased movement of people across the globe and the spread of neoliberalism, as a way of assisting further understanding of this important unit/actor in politics.