During most of the twentieth century, Mexico was governed by one of the longest-ruling authoritarian parties in the contemporary world. Even as most Latin American countries democratized in the 1980s, Mexico remained under the control of the Institutional Revolutionary Party (PRI). It was not until the 2000 presidential election that a two-party system emerged, culminating in the victory of conservative National Action Party (PAN) candidate Vicente Fox, followed in 2006 by the election of Felipe Calderon, also of the PAN. Today, Mexico is a democracy. Yet many of the legacies of its authoritarian government remain, making Mexican democracy both less complete and less stable than established democracies. In this article, the author examines the transformation of Mexican politics, the characteristics of the political system, and some challenges that democracy faces. The article includes a list of discussion questions.