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Direct democracy (DD)—including initiatives and referendums—is increasingly used to decide policy around the world. Based on a wide‐ranging review of literature published over the past 25 years, this article offers theoretical and methodological recommendations to advance the study of DD. First, more focus should be placed on the stages of DD and how they affect one another. Richer theories can only flow once the origins, rules, and context of DD are considered—including the endogeneity of DD. Second, a stronger analysis of how DD is justified by democratic theory is needed; I demonstrate that some mechanisms of DD are clearly supported by democratic theory while others lack a coherent foundation. Finally, historical (e.g., ancient Athens) and contemporary DD are often used interchangeably. An overview of past institutions reveals that contemporary DD is not a return to something that once was. Each lesson provides fruitful avenues for future research. Related Articles: Adams, Brian E. 2012. "Citizens, Interest Groups, and Local Ballot Initiatives." Politics & Policy 40 (1): 43‐68. https://doi.org/10.1111/j.1747-1346.2011.00336.x Stephan, Mark. 2004. "Citizens as Representatives: Bridging the Democratic Theory Divides." Politics & Policy 32 (1): 118‐135. https://doi.org/10.1111/j.1747-1346.2004.tb00178.x Waheduzzaman, Wahed, and Sharif As‐Saber. 2015. "Politics and Policy in Achieving Participatory Governance in a Developing Country Context." Politics & Policy 43 (4): 474‐501. https://doi.org/10.1111/polp.12121 Related Media: The Centre for Research on Direct Democracy (C2D). N.d. C2D is a database with information on direct democracy institutions around the globe. http://c2d.ch LATINNO is the first comprehensive and systematic source of data on new institutions for citizen participation evolving in Latin America. https://www.latinno.net/en/project-information/ The Initiative and Referendum Institute (IRI). N.d. IRI at the University of Southern California tracks all direct democracy mechanisms in the United States. http://www.iandrinstitute.org [ABSTRACT FROM AUTHOR]