This article is about the capital of Uruguay. There is also Montevideo, Minnesota, in the United States of America.

Montevideo is the capital, chief port and largest city in Uruguay (population 1.8 million out of a total 3.43 million in Uruguay as of 2004 [1] (http://www.countrywatch.com/cw_country.asp?vcountry=183)).

Independence Plaza, Montevideo, c. 1900

18 de Julio, the city's main avenue and one of the finest of South America, extends from the Plaza Independencia, which is the junction between the Ciudad Vieja (the historical quarter) and the rest of the city, to the neighbourhood of Cordón.

Montevideo is situated in the South of the country, at the northern mouth of the very wide Plata River (Río de la Plata) estuary, 120 miles across from Buenos Aires at the southern side.

The city was founded in 1725 by the Spanish to prevent further incursions by the Portuguese, who had founded Colonia del Sacramento in the previous century, into what was considered Spanish lands, granted to them by the Treaty of Tordesillas. In 1828, the town became the capital of Uruguay. There are at least two explanations for the name Montevideo: The first states that it comes from the Portuguese "Monte vide eu" which means "I see a mountain". The second is that the Spaniards recorded the location of a fountain in a map as "Monte VI De Este a Oeste" meaning "The sixth mountain from east to west". The city's full original name is San Felipe y Santiago de Montevideo.

The city fell under heavy British influence from the early 19th century until the early 20th century as a way to circumvent Argentine and Brazilian commercial control. It was repeatedly besieged by Argentinian dictator Juan Manuel de Rosas between 1838 and 1851. Between 1860 and 1911, the British built an extensive railroad network linking the city to the surrounding countryside.

During the early 20th century, many Europeans immigrated to the city, and by 1908, 30% of the population was foreign born. During the mid-20th century, military dictatorship and economic stagnation caused a decline whose residual effects are still seen today. Many rural poor flooded the city, with a large concentration in Ciudad Vieja.

Recently, economic recovery and stronger trade ties with Uruguay's neighbors have led to renewed agricultural development and hopes for greater future prosperity.