Abstract: Divide-and-rule is commonly used by autocrats for political survival. Nevertheless, previous formal models of divide-and-rule neglected one crucial element in autocracies: the potential of violent conflict. I incorporate the shadow of conflict into a dynamic model with one ruler and two social groups. The ruler is the agenda setter of revenue allocation while social groups have stochastic opportunities to start a costly conflict to remove the ruler. The ruler implements divide-and-rule by persistently favoring one social group in revenue sharing in exchange for military support that can be leveraged to pacify the other group. When the ruler is not militarily strong, divide-and-rule is necessary for regime survival. The feasibility of divide-and-rule requires a divided society where, between the social groups, the relative socioeconomic advantage in the post-regime-change society and the relative military strength are mismatched.