This chapter reconstructs Hannah Arendt’s theory of council democracy, as it is primarily developed in her twin study of the American and French Revolution in On Revolution (1963). According to Arendt, the council tradition discloses a way in which the constituent power can be controlled and institutionalised, hereby providing a ‘third way’ between liberal constitutionalism and permanent revolution. Arendt was as afraid of ‘overpoliticisation’ as she was of depoliticization – she was both afraid of revolutions that never reached their end (i.e., a free constitution) and became permanent and liberal constitutions that effectively contained the repressed the constituent power altogether. Beyond this binary, Arendt found in the council tradition a way of organising and acting politically as well as some guiding principles that would allow the polity to continually re-express the constituent power and continually re-politicise its foundations.