Over the past two decades, historians have become increasingly fascinated by the question of what enabled the emergence of a stable model of democracy in post-war Western Europe, characterized by the persistence of pre-war elites and top-down forms of decision-making. This article reveals the importance of the British occupations during and after the Second World War in fostering this model of democracy. It does so by comparing and weaving together British occupation strategies in Germany and Italy between 1943 and 1949. Based on a novel examination of archival sources, it demonstrates that British ruling strategies influenced the form of democracy that emerged in these two states. As such, the article reveals the centrality of ‘indirect rule’ practices and their multifaceted impact. Building on imperial precedents, the occupations were primarily run through pre-existing local elites who commanded authority and influence amongst the population. The article argues that this choice explains why the British produced, first, functioning occupation regimes and, subsequently, contributed to the emergence of remarkably stable democracies. At the same time, however, this ruling strategy aided the creation of political regimes that were elite-led and that strongly limited popular participation, leaving many democratic aspirations unfulfilled