General elections were held on Monday, 15 June 1998 for all popularly chosen members of the House of Assembly following the premature dissolution of this body.  General elections had previously been held in February 1994.

The unicameral Parliament of St. Vincent, the House of Assembly, comprises 15 elected Representatives and six Senators appointed by the Governor-General – four on the advice of the Prime Minister and two on the advice of the Leader of the Opposition.  The normal duration of the legislature is five years.

In the 1998 general elections, the ruling New Democratic Party (NDP), led by Prime Minister James Mitchell, was primarily opposed by the United Labour Party (ULP) headed by Vincent Beache; the ULP was founded in 1994 by a merger of the Movement for National Unity (MNU) and the St. Vincent Labour Party (SVLP).  The election date had been announced on 18 May.
During the campaign, the NDP advocated tax cuts and the promotion of tourism and agricultural development, while the ULP called for job creation, economic development and improved social services.

When polling results giving the NDP eight seats and the ULP seven seats were announced, Beache declared that he could not accept the outcome and called for fresh elections, alleging voter intimidation, fraud, and bribery.  This was promptly rebutted by the NDP.  The ULP had taken 54.6% of valid votes.  Voter turnout was 67.4%.

On 17 June, Mitchell was sworn in for his fourth consecutive term as Prime Minister; the next day, his new Cabinet took office.
In December 1998, Beache resigned as leader of the ULP, and Dr. Ralph Gonsalves was elected in his place.  Beache however remained as leader of the opposition in the House of Assembly.

On 27 October 2000, Mitchell resigned as Prime Minister, under the terms of an agreement with the opposition designed to end the anti-government protests that had affect the islands since May.  Arnhim Eustace became the third Prime Minister of St. Vincent and the Grenadines.