Like all states of India, the head of the state government is a governor appointed by the Central Indian Government. His appointment is largely ceremonial, and his main role is to oversee the swearing in of the Chief Minister. The Chief Minister, who holds the real executive powers, is the head of the party or coalition garnering the largest majority in the state elections. The governor also appoints the cabinet ministers on the advice of the Chief Minister. Sikkim has a unicameral legislature like most other Indian states. Sikkim is allocated one seat in each of both chambers of India's national bicameral legislature, the Lok Sabha, and the Rajya Sabha. There are a total of 32 state assembly seats including one reserved for the Sangha. The Sikkim High Court is the smallest high court in the country.

In 1975, after the abrogation of Sikkim's monarchy, the Congress Party got the largest majority in the 1977 elections. In 1979, after a period of instability, a popular ministry headed by Nar Bahadur Bhandari, leader of the Sikkim Sangram Parishad Party was sworn in. Bhandari held on to power in the 1984 and 1989 elections. In the 1994 elections Pawan Kumar Chamling from the Sikkim Democratic Front becoming the Chief Minister of the state. The party has since held on to power by winning the 1999 and 2004 elections.