Nicosia (/ˌnɪkəˈsiːə/ NIK-ə-SEE-ə), known locally as Lefkosia (Greek: Λευκωσία, Turkish: Lefkoşa), is the capital and largest city in Cyprus, as well as its main business center. After the collapse of the Berlin Wall, Nicosia remained the only divided capital in the world, with the southern and the northern portions divided by a Green Line. It is located near the center of the island, on the banks of the Pedieos River.

Nicosia is the capital and seat of government of the Republic of Cyprus. The northern part of the city functions as the capital of the self-proclaimed Turkish Republic of Northern Cyprus, a disputed breakaway region whose independence is recognized only by Turkey, and which the rest of the international community considers as occupied territory of the Republic of Cyprus since the Turkish Invasion in 1974.

Despite the division Nicosia has managed to become a sophisticated and cosmopolitan city, rich in history and culture that combines its historic past with the amenities of a modern city.

The Cyprus dispute is the result of the ongoing conflict between the Republic of Cyprus and Turkey, over the Turkish occupied northern part of Cyprus.^{[not in citation given]} Initially, with the annexation of the island by the British Empire, the "Cyprus dispute" was identified as the conflict between the people of Cyprus and the British Crown regarding the Cypriots' demand for self determination. The dispute however was finally shifted from a colonial dispute to an ethnic dispute between the Turkish and the Greek islanders. The international complications of the dispute stretch far beyond the boundaries of the island of Cyprus itself and involve the guarantor powers (Turkey, Greece, and the United Kingdom alike), along with the United States, the United Nations and the European Union.

With Turkey's military action of 1974 (disapproved by UN Security Council Resolution 1974/360), Turkey occupied the northern part of the internationally recognised Republic of Cyprus, and later upon those territories the Turkish Cypriot community unilaterally declared independence forming the Turkish Republic of Northern Cyprus (TRNC), a sovereign entity that lacks international recognition-with the exception of Turkey with which TRNC enjoys full diplomatic relations.

The Turkish Republic of Northern Cyprus (TRNC) (Turkish: Kuzey Kıbrıs Türk Cumhuriyeti), commonly called Northern Cyprus, is a self-declared state that comprises the northeastern part of the island of Cyprus. Recognised only by Turkey, Northern Cyprus is considered by the international community to be occupied territory of the Republic of Cyprus.

Northern Cyprus extends from the tip of the Karpass Peninsula in the north east, westward to Morphou Bay and Cape Kormakitis (the Kokkina/Erenköy exclave marks the westernmost extent of the area), and southward to the village of Louroujina/Akıncılar. A buffer zone under the control of the United Nations stretches between Northern Cyprus and the rest of the island and divides Nicosia, the island's largest city and capital of both states.

Tensions between the Greek Cypriot and Turkish Cypriot populations in Cyprus culminated in 1974 with a coup d'état, an attempt to annex the island to Greece, and an invasion by Turkey in response. This resulted in the partitioning of the island, the resettlement of many of its inhabitants, and a unilateral declaration of independence by the north in 1983. Due to its lack of recognition, Northern Cyprus is heavily dependent on Turkey for economic, political and military support.