This article takes a governance perspective to examine the contemporary revitalization of Guaraní, a “repressed” language that is spoken by a majority of the population in Paraguay. A historical overview highlights the striking endurance of the language in spite of two centuries of official subjugation. The article traces the positive impact of political democratization since 1989 on the revitalization of Guaraní by examining four interrelated areas that are closely linked to the governance agenda: the education system, the media, the political system, and popular culture. However, the absence of a comprehensive language policy continues to limit progress in improving governance, as the weak impact of the official poverty reduction program exemplifies. The case of Guaraní demonstrates the need for wider recognition of the importance of language policy in promoting good governance through citizen empowerment and accountability of the state.