The British Overseas Territory, off the south coast of Spain, has a population of just under 30,000, with only six top-division teams and 600 registered senior players.
It has previously competed in tournaments such as the Island Games, against teams from Orkney and Shetland.
Gibraltar was accepted into Uefa last year. However, ongoing political tensions mean Gibraltar and Spain were kept apart in the qualifying rounds. Even although they were picked out to be in the same group, the territory was moved to Group D.
There is not a single grass pitch in Gibraltar and its Euro 2016 games will be played in Portugal.
Allen Bula, Gibraltar coach, said: "We wanted one of the British nations and I am delighted we have drawn Scotland."