Following the death of King William III of the Netherlands and in accordance with the pact of succession of the Nassau family, Adolphe became Grand Duke of Luxembourg at the age of 73. This dissolved the personal union between the Netherlands and Luxembourg. Adolphe had lost his duchy of Nassau-Weilburg in 1866 as a result of the Austro-Prussian War.
The residence of the dynasty was the Château de Berg, and the official residence became the refurbished palace at the Marché-aux-Herbes. However, Adolphe rarely stayed in Luxembourg. His son William IV succeeded him in 1905.
In political matters, the Grand Duke left the important decisions to his talented Minister of State, Paul Eyschen (1888-1915). He championed numerous reforms in education and social policy. We also owe him the conservation of certain particularly striking or picturesque parts of the fortress. In 1881, the Chamber of Deputies was enlarged, but even then it was seen as too small.
As well as well-established factories, such as the Schleifmühle textile factory, the railways' transport options became more accessible, allowing new industries to set up shop. Thanks to the steel industry, the country experienced an economic revival. After acquiring licences for the ‘Thomas Gilchrist process’, the Metz&Cie company set up a steelworks in Dudelange, close to the ore deposit.