Even though in 1917 the Netherlands declared neutrality in World War I, the country was still affected by the raging war. The Netherlands suffered brutal riots and food shortages; consequently food had to be distributed using coupons. After the war, the situation improved however, and life got back to norlmal again, with the first air flight from Amsterdam to London made by KLM Royal Dutch Arlines in 1920 and the Olympic Games held in Amsterdam in 1928. The prosperous period came to an end with the Great Depression reaching the Netherlands and cramping its economy in the 1930s.

Unlike World War I, World War II didn't spare the Netherlands. In 1940, Germany invaded the Netherlands forcing the Queen to flee into exile. The poorly-equipped Dutch army didn't stand a chance against Luftwaffe bombings and after five days the Netherlands had to surrender. Under Nazi occupation the Jews living in Dutch cities were persecuted and those who didn't manage to leave the country in time, saved themselves by retreating to hiding places. Anne Frank and her family lived in hiding for two years until they were discovered and taken to concentration camps. Anne died a year later, but her diary found and published in 1947 serves as one of the most important primary sources about the Holocaust till this day. After the worst winter of Nazi occupation when thousands of people lost their lives, there came the spring and the Germans having lost the war, left the Dutch territory in May of 1945.

After World Wars, the Netherlands entered a number of alliances to safeguard its independence. In 1948, along with Belgium and Luxemburg the Dutch formed the Benelux Union and allowed free border crossing within the union. A year later, the Netherlands joined the North Atlantic Treaty Organisation (NATO) and in 1858 it became a member of the European Economic Community (EEC), later to become the European Union.

In the second half of the 20th Century, the Netherlands came to be regarded as the land of freedom and controversy.  In 1975, first laws to legalise the use of marijuana were passed and in 1987 a memorial to gays and lesbians was opened in Amsterdam, which became a symbol of tolerance and, along with other Dutch cities, a haven for many gay couples, especially since 2001, when the first gay couple legally got married. Perhaps even more conroversial was the case of legalising euthanasia in 2002.

The Netherlands is a country of a truly cosmopolitan character and is home to numerous international organisations and institutions. One of the most prominent is the International Criminal Court residing in the Hague.