The paper has three main parts. First, we discuss the conceptualizations of institutionalization, as applied to political parties and how institutionalization can be measured. We then look at institutionalization as dependent variable by identifying factors that may cause institutionalization, including institutionalization as an intended outcome, events that may trigger institutionalization and factors that are conducive to institutionalization. Also the reverse process - de-institutionalization - is discussed in the same way. The third part of the paper discuss institutionalization as independent variable in relation to democratic consolidation.