Monaco, a small principality of Italy, bounded S. by the Mediterranean, and surrounded on all other sides by the French department of Alpes-Maritimes, between Nice and Ventimi-glia. At present it consists only of the town of Monaco and a small portion of the adjoining territory, including the town of Monte Carlo; total area about 6 sq. m.; pop. in 1867, 3,127; of the town, 1,887. It formerly extended about 5 m. along the coast and about 3 m. inland, and consisted of the communes of Monaco, Mentone, and Roccabruna. The principal products are fruit and oil. The Genoese family Grimaldi was in possession of this territory under the protectorate of various governments from the 10th century until the early part of the 18th, when, by the marriage of the sole heiress of the name, it passed into the hands of Jacques de Goyon-Matignon, count of Tho-rigny. Under his grandson Honoratus IV. it was united with the French republic in 1793, but was restored to him and placed under the protection of Sardinia in 1815. The latter government acknowledged the independence of the principality, and reserved to itself only the power of garrisoning it and of appointing the military commander of the town of Monaco. Florestan I. protested in vain in 1848 against the annexation of the communes of Mentone and Roccabruna by Sardinia, and opened negotiations with foreign governments for the sale of his rights.
He died in Paris, June 20, 1856, and was succeeded by his son under the name of Charles III., who in 1861 ceded to France his claims upon Mentone and Roccabruna, receiving an indemnity of 4,000,000 francs. In 1868 the pope separated Monaco from the diocese of Nice; in return for which the prince agreed to establish a Benedictine abbey, the abbot to exercise episcopal functions in the principality.
In 1869 he abolished all taxes, and his revenue is now derived entirely from the rent of the casino where gaming is carried on. The climate is considered very favorable for persons afflicted with pulmonary complaints, and it has become a rival of Nice as a watering place.