Montevideo is the largest city, the capital, and the chief port of Uruguay. The city is home to about half of the country's population - 1,325,968 (2004) spread over an area of 530 square kilometres (200 sq mi) in the southern coast of the country.

The settlement was established in 1726 by Bruno Mauricio de Zabala, as a strategic move amidst a Spanish-Portuguese dispute over the platine region, and as a counter to the Portuguese colony at Colonia del Sacramento. The city was under brief British rule in 1807 and was involved in the first major naval battle in the Second World War: the Battle of the River Plate. It is also the place where the Montevideo convention was signed, in 1933, by nineteen nations of the Americas. Montevideo has a rich architectural and cultural heritage, the latter including tango and candombe.

Montevideo is the hub of commerce and higher education in Uruguay. It has a rich architectural and cultural heritage, the latter including tango and candombe. The city architecture reflects its history, ranging from colonial to Art Deco, and influenced by Spanish, Portuguese, Italian, French and British immigrants.