The chapter examines how participatory and deliberative institutions can help address key challenges facing contemporary liberal democracies. It focuses on four interrelated problems: the bureaucratic “rule by nobody,” ideological polarization, distorted forms of individualism, and the political disengagement of economically disadvantaged citizens. Each of these factors undermines civic participation, public trust, and the legitimacy of democratic governance. While democratic innovations—such as referenda, mini-publics, participatory budgeting, and citizens’ assemblies—cannot provide a universal remedy, they offer considerable potential to alleviate these challenges. Empirical examples from various contexts demonstrate that such innovations can empower citizens, foster cognitive empathy and depolarization, strengthen social cohesion, and promote the inclusion of marginalized groups. However, their effectiveness depends on institutional design, political commitment, social conditions, and participants’ prior democratic experience. Ultimately, democratic innovations must be carefully adapted to local circumstances and guided by clear normative principles—such as inclusiveness, transparency, and popular control—if they are to reinvigorate democracy and counter its current malaise without undermining representative institutions.