The country with the largest population density is Monaco. This tiny city-state has a land area of just about 2.02 square kilometers, yet it boasts a population of around 39,000 residents. Monaco's unique urban layout and high standard of living contribute to its crowded conditions. The wealth of its residents, along with its status as a tax haven and tourist destination, further drives the demand for space, making it the most densely populated sovereign nation in the world.