Relations between England and Azerbaijan trace their roots from the XVI century and are successfully developing in several directions. Legal basis for relations between two countries was founded on January 11, 1920. This day, Britain recognized the independence of the Azerbaijani Democratic Republic - the first republic in the Muslim East. The article is devoted to long enough and rich history of bilateral relations. The article deals with certain historical moments that have become a milestone in the political strategy of England towards Azerbaijan. Undoubtedly oil factor has played a special role in the development of relations between two countries. This is by proved English trade expeditions and enormous interest of the British in oil production in Azerbaijan as far back as in the late Middle Ages. English missionaries and businessmen, who arrived in Azerbaijan, made a great contribution with their activity to the development of relations between two countries. Many global aspects, both positive and negative related to oil and the history of Azerbaijan, have been reviewed.