Anglo settler states like Australia, Canada, New Zealand and the United States were built through the dispossession of Indigenous lands and through the disruption of Indigenous political, social and economic systems. Over time, however, Indigenous nations have challenged the unjust foundations of these states, forcing settler states to respond with repression but also with accommodation, especially in the face of successful Indigenous mobilization. Yet even during these moments, state actors have resisted changes to state sovereignty, sometimes by creating new institutions that seem responsive, but which simply reinforce the status quo. To make sense of these moments, we introduce the concept of “decoy politics” and develop a theory for why states might turn to decoy politics, with a particular focus on Canada. Our findings suggest decoy politics may help explain why reconciliation with Indigenous nations remains difficult despite seemingly genuine attempts at meaningful institutional and policy change.