In this chapter we develop our theory of the relationship between power-sharing institutions and democracy as “the art of the possible” in post-conflict states. Noting the challenging environment that actors confront following civil war, we evaluate the potential for establishing minimalist democracy in post-conflict states as well as the obstacles that inhibit the creation of democracy in its liberal or participatory forms. Power-sharing institutions help make the emergence of minimalist democracy possible, we argue, by providing former belligerents with the assurances necessary to play by the electoral rules of the game. We further identify two mechanisms via which power sharing helps foster minimalist democracy. The first, which facilitates democracy from above by constraining governments’ ability to abuse their citizens, centers on power sharing’s role in establishing the foundations for an effective system of rule of law. In terms of the second mechanism, power sharing facilitates democracy from below by providing for a more equal distribution of rights and freedoms across social groups.