The second smallest country in the world is Monaco. Monaco is a sovereign city-state located on the French Riviera in Western Europe. It is bordered by France on three sides and the Mediterranean Sea on the fourth side. With an area of approximately 2.02 square kilometers (0.78 square miles), Monaco is a tiny nation known for its luxurious lifestyle, glamorous casinos, and picturesque landscapes. Despite its small size, Monaco is densely populated and has a vibrant economy, fueled by tourism, finance, and real estate.