Albania was first populated in the Paleolithic Age (Stone Age), over one hundred thousand years ago, and the earliest settlements have been discovered in the Gajtan cavern (Shkodra), in Konispol, at Mount Dajti, and at Xara (Saranda).  The people of that age lived in secluded groups, mainly in dry caves that would protect from the wind, and they used stones and bones as their tools.

The tools from this age were simple and created primarily from stone. Paleolithic peoples fed on collected products from plants and hunted wild animals.
Albanians are the direct successors of Pellasgians and later the Illyrians.The Illyrian tribes were living from Asia Minor and Balkan Peninsula. The inhabitation of Albanian lands increased in the Neolithic age.People began to abandon caverns and settle in open areas.
Neolithic people were more prone to build their settlements in open fields or next to rivers.A large number of such settlements are discovered in Albania, Kosovo, Montenegro, and Macedonia. Aboriginals gradually developed stable settlements and started an agricultural economy.

This was associated with the development of matriarchy.
The Bronze Age is characterized with shifting demographics. People came from the east around the mid 3000s BC to the early 2000s BC, and they mixed with the indigenous peoples and thus created the Indo-European peoples of the Balkans and Asia Minor (today Turkey).

This population was ancient Pelasgians, which has been mentioned frequently by ancient writers such as Homer, Herodotus, and Thucydides. Several different opinions arise when their ethnicity is analyzed. The differentiation of populations by ethnicity began during the Bronze Age. Herodotus, an ancient Greek historian in the fifth century BC, writes about the Pelasgians that continued to live in Greece. According to him, the language of the Pelasgians was different from Greek, but later assimilated into Greeks.They dealt with agriculture and the sea and were excellent builders.
The Illyrians created and developed their culture, language and anthropological features in the western part of the Balkans and Asia Minor where ancient writers mention them in their works. The name 'Illyria' is mentioned in works since the fifth century BC while some tribe names are mentioned as early as the twelfth century BC by Homer.

The ethnic formation of the Illyrians, however, is much older. The beginning of Illyrian origins in by the fifteenth century BC, from the mid-Bronze Age, when Illyrian ethnic features began to form. By the Iron Age, the Illyrians were fully distinct and had inherited their developing anthropological features and language from the Neolithic and Bronze Ages.
By the end of the fifth century BC, the Illyrians entered the road of slave-ownership, and well-known cities of that time, which exist even today, like Durrahium (Durresi), Apolonia, Butroti (Butrinti), Scodra (Shkodra), Lissus (Lezha), etc, were founded mainly along the sea shore.

The Roman invasion (year 168 BC) had very heavy consequences for the Illyrians, but nevertheless, they successfully faced the assimilating policy of the Romans, mainly thanks to the high standard of development and the clearly crystallized ethnic identity.

With the break up of the Roman Empire in the year 395 AD, Illyria remained under the Byzantine Empire. In the following period, Illyria suffered the invasion of several barbarian tribes, like Goths, Avars, etc.
During the IV - VI centuries, Slavs invaded part of the Northern and Eastern Illyria, as well as Macedonia, parts that with the passing of time were assimilated. The end of the first 
millennium marks the crystallization of the Albanian nation. In the Middle Ages, Albania was occupied by Ottomans. From 1443 to 1468 Gjergj Kastrioti “Skenderbej” led a successful resistance against the invading Ottomans. Scanderbeg managed to give birth to a centralized Albanian state (Arberia), and his flag became the national flag of Albania. After the death of Scanderbeg, resistance continued until 1478, although with only moderate success. Albania then became part of the Ottoman Empire. The majority of the Albanian population that remained converted to Islam.
The XVIII century marks the flourishing of two Albanian very well organized and very powerful "Patriarchies": The Patriarchy of Bushatllinj (with Shkodra as its center and governed by Karamahmut Pasha Bushatlli); and the Patriarchy of Ioaninna, with Ioaninna as its center and governed by Ali Pashe Tepelena).

The peak of the struggle for independence and national identity was reached with the Albanian Renaissance Movement, which starts in 1830. In 1878, this movement was very well organized under the League of Prizren, which served as the first military and political leadership of the Albanian uprisings.

But, unfortunately enough, in the same year, the Congress of Berlin decided the division of the Albanian territories to the benefit of the neighboring states, Montenegro, Serbia and Greece.
After the Second Balkan War, Albania proclaimed its Independence from Ottomans (28th November 1912). But, some of Albanians lands were being absorbed by Serbia and the southern tip by Greece. Despite Serbian, Montenegrin, and Greek occupation forces on the ground, and under immense pressure from Austria-Hungary, it was decided that the country should not be divided but instead consolidated into the Principality of Albania. But, again, on 1913 the majority of the Albanian territories were left out.

They were given to neighboring countries. During the years of the World War I, Albania was converted into a battlefield for the combating powers, and it was invaded consequently by the Italy, Serbia, Montenegro, Greece, France and Austro-Hungary. During 1st WW, Albania became a battle field of involved countries, and different territories were under the rule of France, Austro-Hungarians and Italians, etc.

In 1920, the Congress of Lushnja (a town 90 km south to Tirana), with the consensus of all the representatives from all over Albania declared Tirana to be the Capital of Albania.
From 1925, the country was ruled by President Ahmet Zogu. After ruling Albania for a few years, and on September 1, 1928 1928 he declared himself King Zog I, the first Albanian monarch. His reign ended when the communists took power after the 2nd World War. After the fall of the
communist government, his son Leka, Crown Prince of Albania and the royal family returned to Albania on June 28 2002.

Italy invaded Albania on 7 April 1939, meeting little resistance, and took control of the country, and consequently on April 12, 1939, the so-called Constitutional Assembly declared the end of Zog's Kingdom and offered the crown to Victor Emanuel III. The Albanian State formally remained a Constitutional Kingdom under the Savoy Dynasty. During this time, the Italians annexed parts of Montenegro, Kosovo, Macedonia and Northern Greece to the country.
Albanian communists and nationalists actively fought a partisan war against the Italian and German invasions in World War II. The socialists (most often called communists) took over after World War II. In November 1944, the communists gained control of the government under the leader of the resistance, Enver Hoxha.

The Communist Party was created on November 8, 1941 with the help of Bolshevik Communist Parties, under the guidance of the Yugoslav Communist Party. On January 11, 1946, the Constitutional Assembly declared Albania a People's Republic, as one of the forms of the proletarian dictatorship, which lasted, more or less, half a century. For the many decades under his totaliarian domination, Hoxha created and destroyed relationships with Yugoslavia, the Soviet Union, and China.

Towards the end of the Hoxha era, Albania was isolated, first from the capitalist West (Western Europe, North America and Australasia) and later even from the communist East.

Enver Hoxha died in 1985. The first massive anti-communist protests took place in July 1990. At the end of 1990, after strong student protests and independent syndicated movements, the regime accepted a multiparty system.
The first pluralist general elections were held on 1991. 
The new elections, organized on 1992 brought to power the first democratic coalition, and the first pluralistic Parliament declared the Parliamentary Republic of Albania.

The Euro-Atlantic integration of Albania has been the ultimate goal of the post-communist governments. Albania's EU membership bid, along with the rest of the Western Balkans, has been set as a priority by the European Commission. On 2006 Albania signed a Stabilization and Association Agreement the EU, thus completing the first major step towards joining the bloc. Albania, along with Croatia and Macedonia, is also expected to receive an invitation to join NATO in 2008.
The workforce of Albania has continued to migrate to Greece, Italy, Germany, other parts of Europe, and North America.

However, the migration flux is slowly decreasing, as more and more opportunities are emerging in Albania itself.