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In modern times, archaeology and the study of Egypt's ancient heritage as the field of Egyptology has itself become a major scientific pursuit in the country. Led at first by Westerners, this modern rediscovery has in recent decades been taken up by Egyptian archeaologists such as Zahi Hawass and the Supreme Council of Antiquities he leads. None of this could have taken place, though, without the discovery of the Rosetta Stone, a tablet written in ancient Greek, Egyptian demotic script, and Egyptian hieroglyphs. Greek, a well known language, gave linguists the ability to decipher the mysterious Egyptian hieroglyphic language. The ability to decipher hieroglyphics facilitated the translation of hundreds of the texts and inscriptions that were previously indecipherable, giving us insight into Egyptian culture that would have otherwise been lost to the ages. The stone was discovered on July 15, 1799 in the port town of Rosetta, Egypt,and has been held in the British Museum since 1802.

Ancient Egyptian literature dates back to the Old Kingdom, in the third millennium BC. Religious literature is best known for its hymns to various gods and its mortuary texts. The oldest extant Egyptian literature are the Pyramid Texts: the mythology and rituals carved around the tombs of rulers. The later, secular literature of ancient Egypt includes the 'wisdom texts', forms of philosophical instruction. The Instruction of Ptahhotep, for example, is a collation of moral proverbs by an Egyptian administrator. The authors of the literature of the Old and Middle Kingdoms (through to the middle of the second millennium BC) seem to have been drawn from an elite administrative class, and were celebrated and revered into the New Kingdom (to the end of the second millennium). In time the Pyramid Texts became Coffin Texts (perhaps after the end of the Old Kingdom), and finally the mortuary literature produced its masterpiece, the Book of the Dead, during the New Kingdom.

From the 1910s, Egyptian pop music has become increasingly listened to, as has folk music from Egypt's many cultures. This enhances the sense of place which is part of the Arab influence in Egyptian music.

Egypt's largely uneducated urban and rural lower classes were intensely devoted to Islam, but they lacked a thorough knowledge of the religion. Even village religious leaders had only a rudimentary knowledge of Islam. The typical village imam or prayer leader had at most a few years of schooling; his scholarly work was limited to reading prayers and sermons prepared by others and to learning passages from the Qur'an. Popular religion included a variety of unorthodox practices, such as veneration of saints, recourse to charms and amulets, and belief in the influence of evil spirits.

The government has struggled to ready the economy for the new millennium through economic reform and massive investment in communications and physical infrastructure, much financed from U.S. aid. Egypt is the second largest recipient of such funds from the United States after Israel. Economic conditions are starting to improve considerably after a period of stagnation due to the adoption of more liberal economic policies by the government, as well as increased revenues from tourism and a booming stock market.