A power-sharing partnership has been agreed between the SNP and the Scottish Greens, bringing the latter into a UK Government for the first time ever.
The deal is significant because it would give the Scottish government a majority to pass legislation such as a new independence referendum bill, with both parties in support of an independent Scotland.
This coalition is based on that of New Zealand, where Jacinda Arden's Labour party joined up with the Greens to form government.
Previously the SNP have operated with a minority government, but this move forms a majority.
Here's what you need to know about the deal between the SNP and the Greens and what it means for the future of Scottish politics.
Why has this deal been struck?
In the May Scottish elections, the SNP narrowly missed out on winning a majority, claiming 64 out of the 65 required seats.
It meant that, as in 2016, the SNP had a minority government, which is when a political party forms a government without having the necessary majority of MPs.
In such instances, the government in question requires the backing of MPs from other parties to pass legislation.
It has been this method that the minority SNP government has used in previous years, relying on the support of Green party MPs to pass items such as the annual budget.
Now, however, this is set to change: the deal will likely see some Green MPs brought into Nicola Sturgeon's government as ministers.
While it may look like a coalition in the traditional sense, the Greens will retain opt-out powers from policies they disagree with, meaning they can continue critique the party with which they share power.
Why is the move significant?
With three months to go until COP26, the climate change conference being hosted in Glasgow this November, the deal has come at an important time for the Green party, who historically put heavy focus on environmental issues.
The party is likely to use their new found power in government to push the SNP to do more to address climate change,
Meanwhile, the deal stabilises Nicola Sturgeon's government, removing some obstacles for passing legislation.
Another important factor is that both parties are supporters of independence in Scotland, meaning it is likely that legislation on another referendum will be passed.
Ultimately, it puts the SNP in a stronger position to rebuff opposition from the Conservatives and Labour, the former of which described the deal as a "coalition of chaos".
Labour's leader Anas Sarwar urged the Greens to use the opportunity to demonstrate they are not the SNP's "lackeys", claiming the party needed to "rediscover their principles".
Will this deal give the SNP party outright power?
No, while the deal stabilises the current administration, allowing the Scottish government to pass budgets more easily, the Greens have reatined the power to opt-out.
It means that if they don't like one of the policies, they do not have to back it, giving them the power to continue to critique the SNP party.
For example, the Green party is opposed to the government's road building plans, and is unlikely to support them on such matters.
Speaking on Friday afternoon, First Minister Nicola Sturgeon said that the agreement met "the challenges and opportunities of our time" and signified that a "better world and a better Scotland is capable of being born."
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