The 1980s brought a boom to its previously agricultural economy and had a significant impact on Thai society as thousands flocked to work in industry and the services sector.
Although Thailand's recent governments have been civilian and democratically-elected, the country has seen turbulent times. The military governed, on and off, between 1947 and 1992 - a period characterised by coups, coup attempts and popular protests.
The collapse of the south-east Asian economic boom in 1997 led to public disillusion with free-market policies and encouraged the rise of populist Prime Minister Thaksin Shinawatra.
In September 2006, the military once again stepped into politics, carrying out a bloodless coup against Prime Minister Thaksin.
By the end of 2007, the military junta had drafted a new constitution and held general elections, marking the beginning of the transition back to civilian rule.
Continue reading the main story Politics: Thailand returned to civilian rule in 2008 after a bloodless military coup in 2006 Economy: It has an export-led economy, but tourism is also a major industry International: There have been clashes between Thai and Cambodian troops over disputed border regions since 2009Country profile compiled by BBC Monitoring
Thailand has a minority Muslim, ethnic Malay population concentrated in its southern provinces.A decades-old separatist struggle in the region - which abated in the 1980s - flared again in 2004. The violence has claimed more than 3,000 lives.
Thailand's capital, Bangkok expanded rapidly with the influx of workers during the boom years. It is one of Asia's most vibrant, and heavily-congested, cities.
The large-scale sex industry which flourishes there contributed to the incidence of HIV infection - a major concern for the government.
Thailand has taken the lead in the region in distributing cheaper generic drugs for Aids sufferers and awareness campaigns are credited with reducing the number of new infections.
Since 2009, Thai troops have sporadically clashed with Cambodian forces in several disputed areas along the two countries' border.