To the Muggle world

The Muggles remain, for the most part, oblivious to the wizarding world. This situation is considered preferable to the alternative by wizards; official coexistence, conflict, or wizard supremacy (advocated by some pure-blood supremacists). Most things of magical nature are hidden or otherwise obscured from Muggles; others, such as Dementors, are invisible to them, although they experience the same depression and sense of manifest darkness and despair while near a Dementor. It is commented that Muggles generally dismiss anything they cannot explain. Likewise, too many magical people, many functional aspects of the Muggle world are rarely glimpsed and mysterious. Wizards and witches' attempts to disguise themselves as Muggles, as when they have to venture out onto "normal" streets, often have humorous results. When magic is seen in the muggle world, the Ministry of Magic is often tasked with clean-up. The mispronunciation of common Muggle terms like "telephone", "escalator", "plumber", "firearms" or "policeman", as "fellytone", "escapator", "pumble", "firelegs", and "please-men", respectively, is a running gag in the series. Arthur Weasley is known for being fascinated with the muggle world and has a vast collection of muggle objects.

Muggle Studies is an option of study at Hogwarts. However, while some professions require its study, to others it is often considered a "soft option". Hermione surprised Harry by taking the course, as her parents are Muggles. She explained that she thought it would be "fascinating" to study Muggles from the wizarding point of view.

The only official relations described with the Muggle world are between the Minister for Magic and the Muggle Prime Minister. In Harry Potter and the Half-Blood Prince it is revealed that the Minister for Magic privately introduces himself to each new Prime Minister and briefs him on the important matters of the Magical world. There is a magical painting in the Prime Minister's office that notifies him of such visits, and a fireplace that is connected to the Floo Network, which is how the Minister for Magic travels to 10 Downing Street. Minister for Magic Cornelius Fudge informed the Prime Minister of the escape of Sirius Black. Fudge also informed the Prime Minister that several problems he was facing were rooted in the war against Voldemort and that the Prime Minister's new secretary Kingsley Shacklebolt was an Auror. Fudge treats the Muggle Prime Minister with condescension, and the Muggle Prime Minister is often frustrated by the Minister for Magic.

The exact extent to which the secrecy and isolation of the wizarding world is maintained varies. Many references are made to the Ministry of Magic performing memory charms to preserve secrecy; however, some Muggles have necessary interactions with the wizarding world. Hermione's parents are Muggles, but have been seen in Diagon Alley. They are fully aware that magic exists, but they forbade Hermione to use magic to fix her teeth (as dentists, they felt that this was cheating). The Dursleys are also aware of the Wizarding World; Petunia Dursley indicates that she learned of it when her sister, Lily, was accepted for Hogwarts. She shared this information with her husband, who is shown to be contemptuous of the wizarding world even before Harry shows up at their doorstep. There is no indication that Dudley was aware of this until Harry is told about Hogwarts.

Along with the families of Muggle-born wizards, there are mixed marriages. Seamus Finnigan reports that his mother was a witch who did not inform his Muggle father of her magical abilities until after they were married.

There is also some unspecified financial relationship between the two worlds, as it is possible to exchange Muggle money into wizard money. Hermione's parents are shown doing this in the second book.

Policies on wizard-muggle relationships

In Harry Potter and the Prisoner of Azkaban, Harry writes an essay on medieval witch burning, which was cited as the reason behind the introduction of the International Statute of Wizarding Secrecy, and wizards going into hiding from the Muggle world.

This is further explored in other novels and is notably covered in some depth in The Tales of Beedle the Bard, where Albus Dumbledore writes notes after each story that often concern Wizard-Muggle relationships. Part of these 'observations' note how The Tales were modified in the face of anti-Muggle sentiments, in order to remove any pro-Muggle messages for wizards who did not want their children exposed to those messages. This included Lucius Malfoy, who demanded that the Tales be removed from the Hogwarts syllabus.

Fantastic Beasts and Where to Find Them shows that different wizarding governments around the world may have different levels of relationships with Muggles depending on their social and political climate and that these relationships may even change over time like other political policies. In the film, Newt Scamander describes American wizarding law in regard to Muggles as "rather backward", and further explains that American wizards are forbidden from having any contact or relationships with Muggles.

Internally

Since a person's most important capability – magical aptitude – does not depend on sex, sexual equality is highly advanced in the Wizarding World, and the "battle of the sexes" never became much of an issue (for example, Quidditch teams have both male and female players – except for a known example, the Holyhead Harpies, which are an all-female team).

The most obvious example of wizard prejudice is a longstanding disdain, even a genocidal hatred, toward Muggles and wizards and witches of Muggle parentage (Muggle-borns, half-bloods) among certain wizards. This has led to a eugenic philosophy among some of the older wizarding families, leading to a practice of "pure-blood" intermarriage that has exposed many of them (such as the Gaunt family) to the risks of mental instability.

Other internal tensions include the slavery of house elves and the suspicion or disregard for some species of near-human intelligence ("beings" in Wizard parlance). Voldemort and his allies frequently exploit these divisions to bring non-human magical creatures, particularly werewolves and giants, over to their cause.

Internationally

The magical governments of the world are to some degree united in the International Confederation of Wizards. This organisation has many responsibilities, mostly to enforce the International Statute of Wizarding Secrecy.

There is a reference to the Ministry of Magic's Department of International Magical Cooperation and to various international bodies such as the International Magical Trading Standards Body, the International Magical Office of Law, the International Confederation of Wizards and the International Quidditch Association.

As noted in the depiction of the Quidditch World Championship in Goblet of Fire, Irish and Bulgarian wizards (and presumably, also those from other countries) can feel a strong national pride and be intensely eager for their country to win – even though Irish and Bulgarian Muggles, who form most of the population in the two countries, are not aware that the Championship is taking place.

The books do not refer to the degree to which wars and tensions between Muggle governments (e.g., the World Wars or the Cold War) influence the relations between the respective wizarding governments. However, Rowling has strongly implied that the rise of the dark wizard Gellert Grindelwald and his defeat by Dumbledore in 1945 were related to the rise and fall of the Third Reich.