The EU has been committed in its foreign and security policy to promoting values, especially freedom, democracy, rule of law and human rights. All main conceptualisations of the EU global actorness – from civilian, through normative until liberal power – are built on the possibility of the EU to export its own values and norm. What happens when these values and norms are no longer shared by all the member states? What are the putative results of the EU losing its appeal as an ultimate embodiment of the values it promotes abroad? This article takes the rule of law crisis – primarily concerning Hungary and Poland – as its case study to demonstrate how the process of de-democratisation in EU member states impacts internal and external aspects of EU foreign and security policy. Internally, the decision making regarding the EU foreign and security policy is impacted with processes such as de- and politicisation and contestation of procedural norms of EU foreign and. This is fuelled by increased reluctance to follow binding EU rules in some countries and the role of right-wing, populist parties and growing contestation of substantial EU norms such as rule of law. Externally, the EU pursues promotion of democracy despite internal rule of law crisis in its member states and the article takes stock on what impact it has on the democracy support, development aid and ultimately EU’s credibility as a normative and liberal power. On the bright side, the internal rule of law crisis in some member states may, however, serve as a learning mechanism for reflecting how to promote rule of law abroad and for improving the EU’s watchdog functions also in an external setting.