Robert Nozick is the most famous representative of political libertarianism. According to this position, a state is justified only if it is minimal which means that it controls only police, judiciary, and army. The aim of the present thesis is to show the main elements of Nozick’s minimal state and critically review his arguments for the minimal state. Due to the self-ownership thesis and separateness of individuals, a state must not have greater authority in the aspect of intervention in the lives of individuals. Referring to John Locke, Nozick described the state of nature in which no state exists, but everyone depends on themselves. He believes that on a specific territory people would form “protective associations” which would merge into a “dominant protective association”. Nozick calls such agency “ultra-minimal state”. To attract individuals who would not have been members of any protective agency, the dominant protective agency would offer them compensation. Independent individuals would give up their right to execute punishment in trade for free or cheaper protective service which would have been provided by the dominant protective agency. This is how a minimal state comes into existence.