In 1635, France claimed Dominica. Shortly thereafter, French missionaries became the first European inhabitants of the island. Carib incursions continued, though, and in 1660, the French and British agreed that both Dominica and St. Vincent should be abandoned. Dominica was officially neutral for the next century, but the attraction of its resources remained; rival expeditions of British and French foresters were harvesting timber by the start of the 18th century.

Largely due to Dominica's position between Martinique and Guadeloupe, France eventually became predominant, and a French settlement was established and grew. As part of the 1763 Treaty of Paris that ended the Seven Years' War, the island became a British possession. In 1778, during the American Revolutionary War, the French mounted a successful invasion with the active cooperation of the population, which was largely French. The 1783 Treaty of Paris, which ended the war, returned the island to Britain. French invasions in 1795 and 1805 ended in failure.

In 1763, the British established a legislative assembly, representing only the white population. In 1831, reflecting a liberalization of official British racial attitudes, the Brown Privilege Bill conferred political and social rights on free nonwhites. Three Blacks were elected to the legislative assembly the following year. Following the abolition of slavery, in 1838 Dominica became the first and only British Caribbean colony to have a Black-controlled legislature in the 19th century. Most Black legislators were smallholders or merchants who held economic and social views diametrically opposed to the interests of the small, wealthy English planter class. Reacting to a perceived threat, the planters lobbied for more direct British rule.

In 1865, after much agitation and tension, the colonial office replaced the elective assembly with one comprised of one-half elected members and one-half appointed. Planters allied with colonial administrators outmaneuvered the elected legislators on numerous occasions. In 1871, Dominica became part of the Leeward Island Federation. The power of the Black population progressively eroded. Crown Colony government was re-established in 1896. All political rights for the vast majority of the population were effectively curtailed. Development aid, offered as compensation for disenfranchisement, proved to have a negligible effect.

Following World War I, an upsurge of political consciousness throughout the Caribbean led to the formation of the Representative Government Association. Marshaling public frustration with the lack of a voice in the governing of Dominica, this group won one-third of the popularly elected seats of the legislative assembly in 1924 and one-half in 1936. Shortly thereafter, Dominica was transferred from the Leeward Island Administration and was governed as part of the Windwards until 1958, when it joined the short-lived West Indies Federation.

After the federation dissolved, Dominica became an associated state of the United Kingdom in 1967 and formally took responsibility for its internal affairs. On November 3, 1978, the Commonwealth of Dominica was granted independence by the United Kingdom.

Independence did little to solve problems stemming from centuries of economic underdevelopment, and in mid-1979, political discontent led to the formation of an interim government. It was replaced after the 1980 elections by a government led by the Dominica Freedom Party under Prime Minister Eugenia Charles, the Caribbean's first female prime minister. Chronic economic problems were compounded by the severe impact of hurricanes in 1979 and in 1980. By the end of the 1980s, the economy had made a healthy recovery, which weakened in the 1990s due to a decrease in banana prices.

In January 2000 elections, the Edison James United Workers Party (UWP) was defeated by the Dominican Labor Party (DLP), led by Roosevelt P. "Rosie" Douglas. Douglas died after only a few months in office and was replaced by Pierre Charles, who died in office in January 2004. Roosevelt Skerrit, also of the DLP, replaced Charles as Prime Minister. Under Prime Minister Skerritís leadership, the DLP won elections in May 2005 that gave the party 12 seats in the 21-member Parliament to the UWPís 8 seats. An independent candidate affiliated with the DLP won a seat as well.