The article analyzes the (often implicit) understanding of democratic theory that is presupposed by scholars who engage in this practice and provides an answer to the question: “What are we doing when we are doing democratic theory?” We flesh out the core features of this scholarly activity by relating it to and differentiating it from assessments made from the perspective of political philosophy and political science. We argue that democratic theory aims at proposing institutional devices that are (a) problem-solving approaches and (b) embodiments of normative principles. This two-faced structure requires democratic theorists to engage in feedback loops with political philosophy on the one hand and empirical political science on the other. This implies that democratic theorists must adopt a dynamic approach: democratic theories must “fit” societal circumstances. In consequence, they must be adapted in case of fundamental societal transformations. We exemplify this dynamic character by referring to digitalization-induced changes in democratic societies and their implications for democratic theorists’ practice.