Monaco, small country in southwestern Europe. Monaco lies on the Mediterranean Sea at the foot of the Maritime Alps, forming an enclave in southeastern France. After Vatican City, Monaco is the smallest nation in the world, with a land area of just 1.95 sq km (0.75 sq mi).

Located just east of Nice on the French Riviera and near the border with Italy, Monaco is one of Europe’s most popular resort areas. Sheltered by the lower slopes of the rugged Alps, Monaco enjoys a Mediterranean climate, with hot, dry summers and mild winters. Tourism is an economic mainstay of Monaco, which is famed for its fine beaches and hotels, its casinos, and the annual Monaco Grand Prix automobile race.