In many parts of the world, people live in "dual polities": they are governed by the state and organize collective decision making within their ethnic community according to traditional rules. We examine the substantial body of works on the traditional–state dualism, focusing on the internal organization of traditional polities, their interaction with the state, and the political consequences of the dualism. We find the descriptions of the internal organization of traditional polities scattered and lacking comparative perspective. The literature on the interaction provides a good starting point for theorizing the strategic role of traditional leaders as intermediaries, but large potentials for inference remain underexploited. Studies on the consequences of "dual polities" for democracy, conflict, and development are promising in their explanatory endeavor, but they do not yet allow for robust conclusions. We therefore propose an institutionalist research agenda addressing the need for theory and for systematic data collection and explanatory approaches.