In December 1921, British authorities in Cairo responded to nationalist demonstrations by deporting Saad Zaghlul and imposing martial law. Despite these tensions, the UK declared Egyptian independence on February 28, 1922, ending the protectorate and establishing the independent Kingdom of Egypt with Sarwat Pasha as prime minister. However, Britain maintained significant control over Egypt, including the Canal Zone, Sudan, external protection, and influence over police, army, railways, and communications.

King Fuad's reign was marked by struggles with the Wafd Party, a nationalist group opposing British influence, and the British, who aimed to retain control over the Suez Canal. Other significant political forces emerged during this period, such as the Communist Party (1925) and the Muslim Brotherhood (1928), the latter growing into a significant political and religious entity.

After King Fuad's death in 1936, his son Farouk ascended the throne. The 1936 Anglo-Egyptian Treaty, influenced by rising nationalism and the Italian invasion of Abyssinia, required the UK to withdraw troops from Egypt, except in the Suez Canal Zone, and allowed for their return in wartime. Despite these changes, corruption and perceived British puppetry marred King Farouk's reign, leading to further nationalist sentiment.

During World War II, Egypt served as a base for Allied operations. Post-war, Egypt's defeat in the Palestine War (1948-1949) and internal dissatisfaction led to the 1952 Egyptian Revolution by the Free Officers Movement. King Farouk abdicated in favor of his son, Fuad II, but the monarchy was abolished in 1953, establishing the Republic of Egypt. Sudan's status was resolved in 1953, leading to its independence in 1956.