Smith first focuses on the ethnic past of nations while also pointing out the differences between ethnic groups and modern nations. He moves through a short history of ethnic groups and nations, asking the important question of whether ancient Egypt, Israel and Greece were ethnic nations before examining the medieval cases of England and France. In all cases he puts emphasis on the importance of the homeland, a concept which can hardly be overemphasized in dealing with national identity.

He then moves to a typology of nationalism, claiming that 'nationalism-in-general is merely a lazy historian's escape'. He examines the oft-neglected cultural aspect of nationalism, one that was at its height in nineteenth-century Europe but which has been replaced in the news today by genocide and ethnic cleansing.

Moving on to the impact of colonialism, imperialism and decolonization on the development of national identity, Smith spends a good amount of time on non-European nations like Egypt, Ethiopia and India. He shows again how difficult it is to generalize about nationalism, especially outside Europe.

Finally, Smith looks to the future, asking the inevitable question of whether nations and national identity are doomed. He argues that any attempt to supersede national identity, e.g. the creation of a European identity around the EU, must inevitably draw in so many aspects of national identity that it is merely another form of national identity. Smith claims that, just as national identity has been with us for quite some time, it will remain for a while as well.