The Maldivian ethnic identity is a blend of the cultures reflecting the peoples who settled on the islands, reinforced by religion and language. The earliest settlers were probably from southern India and Sri Lanka. They are linguistically and ethnically related to the Indo-Aryan people in the Indian subcontinent They are ethnically known as Mahls (locally as Dhivehis).

Some social stratification exists on the islands. It is not rigid, since rank is based on varied factors, including occupation, wealth, Islamic virtue, and family ties. Traditionally, instead of a complex caste system, there was merely a distinction between noble (b?fulhu) and common people in the Maldives. Members of the social elite are concentrated in Mal?. Outside the service industry, this is the only location where the foreign and domestic populations are likely to interact. The tourist resorts are not on islands where the natives live, and casual contacts between the two groups are discouraged.

A census has been recorded since 1905, which shows that the population of the country remained around 100,000 for the next sixty years. Following independence in 1965, the health status of the population improved so much that the population doubled ( 200,000 ) by 1978, and the population growth rate peaked at 3.4% in 1985. By 2007, the population had reached 300,000, although the census in 2000 showed that the population growth rate had declined to 1.9%. Life expectancy at birth stood at 46 years in 1978, while it has now risen to 72 years. Infant mortality has declined from 127 per thousand in 1977 to 12 today, and adult literacy stands at 99%. Combined school enrollment stands in the high 90s.

As of April 2008, more than 70,000 foreign employees live in the country and another 33,000 illegal immigrants sums up more than one third of Maldivian population. They consist mainly of people from the neighbouring South Asian countries of India, Sri Lanka, Bangladesh and Nepal.