timor-leste is the youngest and poorest state in all asia. its birth as a state has become an interesting laboratory for the reinterpretation of classic theories about state-building, nationbuilding, international recognition and institutional sustainability. this document makes a summary review of the most important historical facts that have contributed to the creation of the democratic republic of timor-leste, as well as the factors that have affected its acknowledgment as state. the construction of the nation, from the perspective of an imagined community, conflicts with timor-leste being catalogued as a failed state. in this respect, the concepts of failed or collapsed state and their applicability in the case of timor, will be addressed. likewise, this work will outline some challenges brought by its independence, such as the process of reconciliation and rebuilding of the historic memory, identity and language, as well as socioeconomic and geopolitical issues.