The purpose of this paper is to provide an overview of the sociolinguistic situation in Estonia. The paper opens with a historic overview, followed by an overview of the current demographic situation and of post-Soviet language and education policies and practices. It is argued that Estonia represents a success story in terms of language policy, in that it managed to shift Estonian from a minoritized position of the Soviet time to the national and official language that has gained a competitive edge over Russian, the former language of prestige. Nevertheless, some tensions persist in the republic. The Russian-speaking population in Estonia is not homogeneous, and while some members of this community adopted an integrative attitude, those whose language skills constrain their upward mobility continue to display a negative attitude toward Estonia and Estonian language.