Prime Minister David Cameron pledged Britain's support as he met the territory's chief minister for talks on the border spat with Spain saying that the UK will "stand up for the interests" for those living there.
Police in Gibraltar are following up on reports that missiles were thrown at their Spanish colleagues on Wednesday, the latest incident in continued tensions on the border between Spain and its diminutive neighbour.
The town hall of La Línea, the Spanish municipality closest to Gibraltar, has set up a citizens' advice office for businessmen and shop owners who are losing money as a result of the ongoing dispute.
A Spanish mayor has stirred up the Gibraltar affair after posting on his Facebook profile a photoshopped image of Spanish troops and planes invading the diminutive British territory.
Britain's top representative in Gibraltar reacted angrily on Friday to news that Spanish police divers had filmed themselves inspecting a concrete reef in waters claimed by the tiny territory.
The Wall Street Journal has published a letter from Spain's minister of foreign affairs and cooperation, José Manuel García-Margallo, demanding the immediate removal of concrete blocks from the Bay of Gibraltar before the start of bilateral negotiations with Britain over the colony's future.
The European Commission said on Monday that imposing taxes or toll fees at EU member-state borders would be "illegal", as a diplomatic tug-of-war between Britain and Spain over Gibraltar escalated.
Situated in sight of unstable north Africa and on the shipping route to the Middle East, Gibraltar has military and intelligence facilities that still make it a strategic asset for Britain, analysts say.
British Prime Minister David Cameron called on European Commission president Jose Manuel Barroso on Friday to send monitors to observe "politically motivated" checks at Spain's border with Gibraltar as soon as possible.
A member of the European Parliament has received a barrage of online abuse by Twitter trolls after she publicly encouraged British families not to go on holiday to Spain following the latest Gibraltar dispute.
Gibraltar is pleased that Spain is "at last" thinking of taking its longstanding dispute over the sovereignty of the British outpost to international courts, Gibraltar Chief Minister Fabian Picardo said in an interview on Wednesday.
Catalonia's Esquerra Republicana de Catalunya (ERC) party has sent a letter of support to Gibraltar's Chief Minister in the wake of the territory's row with Spain.
A retired Spanish lieutenant general has accused Spain's defence forces of "dropping their pants" over Gibraltar after news of the arrival of British warships in the Mediterranean during a row between Spain and the United Kingdom.
With robust growth and nearly no unemployment, the tiny British outpost of Gibraltar on Spain's southern tip is a bubble of prosperity that contrasts with the economic malaise engulfing its neighbour.
Spain is considering taking its row over the disputed territory of Gibraltar to global bodies such as the United Nations and International Court of Justice at The Hague, a foreign ministry spokesman said.
Spain will take "all necessary measures" to defend its interests in Gibraltar, Prime Minister Mariano Rajoy said on Friday amid a row with London over the British outpost on Spain's southern tip.
British Prime Minister David Cameron got on the phone on Wednesday to warn his Spanish counterpart that the Gibraltar border tensions risked damaging relations between London and Madrid.
The European Commission said on Tuesday it would send a team of monitors to the Spain-Gibraltar border in the face of the ongoing row between the two neighbours.
Gibraltar Chief Minister Fabian Picardo has blasted Spain's threat to impose a €50 ($66) car toll at the border with the tiny British-held territory as North Korean-style "sabre rattling" and a "neanderthal approach".
Spain and Gibraltar's diplomatic spat is far from over, now that Spain's Foreign Minister has announced a series of possible hard-line measures to "tighten the grip" on its diminutive neighbour.
Spain has eased intensive checks on the Gibraltar border that caused delays to car traffic but Britain will be "closely monitoring" the situation, Prime Minister David Cameron's spokesman said on Monday.
The British government said it had "serious concerns" after Gibraltar accused Madrid of deliberately creating delays to car traffic to and from the disputed British-held territory to Spain.
Saturday was a huge day for tiny Gibraltar with the territory known as The Rock celebrating 300 years of British rule. In this gallery, The Local takes a look at some of the stranger facts about our odd southern neighbour.