Executive power is exercised by the government. Legislative power is vested in both the government and the two chambers of Parliament, the Senate and the National Assembly. The Judiciary is independent of the executive and the legislature.

The Lesotho Government is a constitutional monarchy. The Prime Minister, Tom Thabane, is head of government and has executive authority. The King serves a largely ceremonial function; he no longer possesses any executive authority and is proscribed from actively participating in political initiatives. 

According to the constitution, the leader of the majority party in the assembly automatically becomes prime minister; the monarch is hereditary, but, under the terms of the constitution which came into effect after the March 1993 election, the monarch is a "living symbol of national unity" with no executive or legislative powers; under traditional law the college of chiefs has the power to determine who is next in the line of succession, who shall serve as regent in the event that the successor is not of mature age, and may even depose the monarch.

Parliament has two chambers. The National Assembly has 120 members, elected for a five-year term, 80 in single-seat constituencies and 40 by proportional representation. The Senate has 33 nominated members.

The Lesotho Congress for Democracy (LCD) won the majority in parliament in the 23 May 1998 general elections, leaving the once-dominant Basotho National Party (BNP) and Basotholand Congress Party (BCP) far behind in total votes.

 Although international observers as well as a regional commission declared the elections to have reflected the will of the people, many members of the opposition have accused the LCD of electoral fraud. 

The 1998 elections were the third multiparty elections in Lesotho's history. The LCD, BNP, and BCP remain the principal rival political organizations in Lesotho. Distinctions and differences in political orientation between the major parties have blurred in recent years.

Nevertheless, after political riots following the disputed 1998, an all-party forum called the Interim Political Authority was formed to level ground for the next poll. It proposed the restructuring of the Independent Electoral Commission, which happened and the change of the model from pure First-Past-the-Post System to Mixed Member Proportional Representation.

In the 25 May 2002 general elections, the ruling Lesotho Congress for Democracy was re-elected by majority, winning all but one of the 80 constituency-based seats. 40 compensatory seats under the Proportional Representation were shared among nine opposition parties.

LCD was re-elected in the 2007 elections but lost power after the 2012 elections to a coalition headed by the All Basotho Convention.

The constitution provides for an independent judicial system. The judiciary is made up of the High Court of Lesotho, the Court of Appeal, magistrate's courts, and traditional courts that exist predominantly in rural areas. There is no trial by jury; rather, judges make rulings alone, or, in the case of criminal trials, with two other judges as observers.

 The constitution also protects basic civil liberties, including freedom of speech, association, and the press; freedom of peaceful assembly; and freedom of religion.