This article is driven by an empirical paradox over where Somalia came from (pre-colonial clan-states) and where it ended up (return to pre-colonial clano-territorial conflicts). Existing academic studies on contemporary Somalia, which were supposed to provide critical analysis, continue to applaud the creation of clan-states within the failed state of Somalia. Based on a variety of unique primary sources, this article offers a new perspective on the current state formation processes occurring in the purview of the Somali State. Somali clans are determined to come to terms with the state collapse by averting the return to political power of the detested military regime, which was led by one clan-based leadership that tended to terrorize other rival clans and denied any equal power- and resource-sharing framework. Conceptualizing the contemporary Somali state as similar to pre-colonial clan-sultanates, this article argues that contemporary Somalis are reverting to a pre-colonial realm where each clan had its clan sultan seeking for a clan-state of its own right. Where else do clan-states compete against each other in entering into “treaties” with external entities intent on exploiting war-torn Somalia as tabula rasa? It is towards the objective of answering this question and of providing a better understanding of the Somali conflict that this article is offered to add a comparative empirical understanding of the different trajectories of state formations in Somalia.