ABSTRACT Hermann Heller’s critique of liberalism was both theoretical and conjunctural. He derided liberalism’s erosion of the concept of sovereignty and lamented liberalism’s complicity with the substantive inequality of his time. It its place, he argued for a restoration of the concept of popular sovereignty, as a dialectical formation of political unity and material equality through the democratic process. As a matter of political practice and strategy, however, Heller equivocated in his stance on the constitutional politics of the Weimar Republic. He initially tolerated the abrogation of parliamentary democracy due to his faith in the neutrality of the state, before diagnosing the regime as a form of authoritarian liberalism determined by the capitalist economy. This article examines Heller’s theoretical and political critique of liberalism. It outlines Heller’s conception of popular sovereignty against both Kelsen’s legal rationalism and Schmitt’s political decisionism. It also examines the significance of the interwar conjuncture, highlighting that the turn of the bourgeoisie to authoritarianism and ultimately to fascism represented a continuity of the liberal elision of the principle of popular sovereignty.