An enclave is a territory that is entirely surrounded by the territory of only one other state or entity. Such territory can be a small territory as part of a larger one. Enclaves may also exist within territorial waters. Enclave is sometimes used improperly to denote a territory that is only partly surrounded by another state. Many enclaves are also exclaves, but some are not, for example Vatican City and San Marino and Lesotho are completely enclaved sovereign states.

Monaco, officially the Principality of Monaco, is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Liguria, in Western Europe, on the Mediterranean Sea. It is a semi-enclave bordered by France to the north, east and west. The principality is home to 38,682 residents, of whom 9,486 are Monégasque nationals; it is widely recognised as one of the wealthiest and most expensive places in the world. The official language of the principality is French. In addition, Monégasque, English and Italian are spoken and understood by many residents.