Existing work on state building focuses on the creation of modern bureaucracies and institutions for education and taxation but generally neglects to point to communal property regimes as tools of statecraft. Political science scholars who focus on ethnic communal lands in the Americas emphasize the rise of formal multicultural institutions, including Indigenous land rights, but are skeptical about governments’ willingness to title large extensions of land to Indigenous or other ethnic groups because of opposing economic interests. Focusing on the titling of 12 percent of Honduras’s territory between 2012 and 2016, this article uses semi-structured elite interviews, land titling data, field notes from three months in rural and urban sites in Honduras, and drug-trafficking reports to examine the motivation of officials in the central government. Evidence suggests that the central government views and uses ethnic land titling as a strategy to reclaim territorial dominance in contested locations that lack state presence.