2 ODI Policy brief De facto entities therefore occupy a key place in the international system even as they are unable to participate fully in it. However, non-recognition of statehood is not merely a question of denying symbolic recognition, but a political decision with complex ramifications for those living in unrecognised entities – whose lives are shaped in profound ways by the uncertainties and exclusions caused by living in political entities which are denied formal recognition. While there have been some academic studies of domestic politics in de facto states (see Broers, 2013; O’Loughlin et al., 2015), these have tended to focus on the geopolitical dimensions of de facto states, with one notable strand exploring pathways for bilateral and multilateral ‘engagement without recognition’ (de Waal, 2018; Ker-Lindsay, 2018). The effects of engagement and (non-) recognition on civilians in areas of de facto governance have received less attention, particularly from a policy perspective. This briefing note offers an initial overview of the political, economic and social implications of non-recognition for de facto states, looking specifically at the ways in which it influences and shapes the day-to-day experience of life in unrecognised territories. Just like civilians in areas governed by armed groups, and communities in areas of criminal group control, those living in de facto states are actively engaged in navigating the uncertainties, risks and challenges of life in an unrecognised entity (Jackson, Weigand and Tindall, 2022a; Jackson, Weigand and Tindall, 2022b). This note offers a perspective on how non-recognition and the various policies of ‘engagement without recognition’ adopted by international actors shape the lives of the inhabitants of de facto states. The paper is part of a programme on relations between civilians and armed groups conducted by the Centre on Armed Groups in partnership with ODI. This programme explores how armed groups and other non-state authorities influence and exert control over civilians �� and how civilians negotiate life under their control. The objective of this paper is to shed further light on the demands of and possibilities for engagement with de facto states in their varied forms and capacities, and to encourage more detailed study of how people living in de facto states interact with and shape the political regimes in which they live.