This paper bridges the gap between studies of subaltern social movements and elite politics by asking how political and economic elites respond to indigenous mobilisation in Ecuador. I argue that elites have developed a hegemonic project based around three core principles – multiculturalism, economic liberalism and democracy – that serves to incorporate indigenous peoples into the political system while simultaneously excluding indigenous movement demands that would undermine the political and economic sources of elite power. The paper develops this argument around a concept of what I call ‘multicultural market democracy’ based on historical analysis and in-depth interviews with 43 Ecuadorian elites.