This article contributes to the discourse on hybridity by reviewing the development of the legal framework related to traditional governance mechanisms in Timor-Leste in the twenty years since independence in 2002. It analyzes how this framework has contributed to nurturing governance in the country and argues that traditional governance mechanisms have had a considerable role in improving governance since independence. It is also argued that with regulation and proper support from stakeholders, a traditional governance system can facilitate democratization, and that the host community can become the driver of positive change.