The politics of Andorra take place in a framework of a parliamentary constitutional diarchy, and a multi-party system. Executive power is exercised by the government, with the Head of Government of Andorra as chief executive. Legislative power is vested in both the government and parliament. The judiciary is independent of the executive and the legislature.

Before 1993, Andorra's political system had no clear division of powers into executive, legislative, and judicial branches. A constitution ratified and approved in 1993 establishes Andorra as a sovereign parliamentary democracy that retains the Bishop of Urgell and president of France as co-princes and heads of state. However, the head of government retains executive power. The two co-princes serve coequally with limited powers that do not include an individual veto over government acts (however, a bill can in effect be "vetoed" if both do not sign the legislation). They are each represented in Andorra by a personal representative.

The fundamental impetus for this political transformation was a recommendation by the Council of Europe in 1990 that, if Andorra wished to attain full integration in the European Union (EU), it should adopt a modern constitution that guarantees the rights of those living and working there. A Tripartite Commission – made up of representatives of the co-princes, the General Council, and the Executive Council – was formed in 1990 and finalized the draft constitution in April 1991, making the new constitution a fact.

One remaining, symbolic, legacy of Andorra's special relationship with France and Spain, is that the principality has no postal service of its own – French and Spanish postal services operate side by side, although each of them issues separate stamps for Andorra, instead of using their own.

Under the 1993 constitution, the co-princes continue as heads of state, but the head of government retains executive power. The two co-princes serve coequally with limited powers that do not include veto over government acts. Both are represented in Andorra by a delegate, although since 1993, France and Spain have their own embassies. As co-princes of Andorra, the Bishop of Urgell and the President of France maintain supreme authority in approval of all international treaties with France and Spain, as well as all those that deal with internal security, defense, Andorran territory, diplomatic representation, and judicial or penal cooperation. Although the institution of the co-princes is viewed by some as an anachronism, the majority sees them as both a link with Andorra's traditions and a way to balance the power of Andorra's two much larger neighbors.

The way the two princes are chosen makes Andorra one of the most politically distinct nations on earth. One co-prince is the sitting Bishop of Urgell of the Catalan city of La Seu d'Urgell, currently Josep-Lluís Serrano Pentinat. The other is the sitting President of France, currently Emmanuel Macron (it has historically been any head of state of France, including kings and emperors of the French). As neither prince lives in Andorra, their role is almost entirely ceremonial.

In 1981, the Executive Council, consisting of the Cap de Govern (head of government) and seven ministers, was established. Every four years, after the general elections, the General Council elects the head of government, who, in turn, chooses the other members of the Executive Council.

Andorra's main legislative body is the 28-member General Council (Parliament). The sindic (president), the subsindic and the members of the Council are elected in the general elections to be held every four years. The Council meets throughout the year on dates set by tradition or as required.