Revolutionary democratic movements seek to overturn autocratic institutions and transform the underlying distribution of political power. In this paper, we provide evidence on how inclusive revolutionary dynamics reinforce de jure democratic reforms and strengthen state capacity. We study Nepal’s People’s War, which overthrew a 240-year caste-based monarchy and established a federal democracy. Using a spatial regression discontinuity design, we show that wartime exposure to a rebel government increased political knowledge and engagement, especially among citizens belonging historically excluded indigenous groups (Janajatis). We document implicit bias against Janajati leadership among upper-caste party leaders and show that in areas exposed to wartime rebel governance structures, there are more Janajati party leaders, and subsequently more Janajati candidates. By the second post-revolution election, Janajatis achieved proportional mayoral representation. Consistent with their electoral success reflecting competence, Janajati mayors delivered more post-earthquake aid than elite-caste counterparts, especially in municipalities where Janajatis were electoral minorities. Lastly, rebel-governed municipalities have higher state capacity and raise more tax and grant revenue.