The party is an heir of the liberal factions of ARENA (Aliança Renovadora Nacional), the official party of the military regime that ruled Brazil from 1964 to 1985. The party was founded as the Liberal Front in 1985, after a split in the Democratic Social Party (former ARENA), and supported the presidential candidacy of Tancredo Neves of the Brazilian Party for Democratic Movement, against the official candidate of the military dictatorship, Paulo Maluf.
At the legislative elections, 6 october 2002, the party won 84 out of 513 seats in the Chamber of Deputies and 19 out of 81 seats in the Senate. At the elections of October 1, 2006, the party won 65 seats in the Chamber of Deputies and 18 of the 48 seats on dispute in the Senate. It is the second largest party in the Senate. The party usually does not run presidential candidates, but does run gubernatorial candidates in several states. At the 2006 elections the party lost several state governorships, but won the governorship of the Distrito Federal. In 2007, the party adopted its current name.
It was part of Fernando Henrique Cardoso's governing coalition, and is currently one of the two main opposition parties to Luiz Inácio Lula da Silva's Workers' Party government (the other being the Brazilian Social Democracy Party).