This article explores how late nineteenth-century British socialists theorized the relationship between socialism and democracy through debates about the referendum. At the 1896 London Congress of the Second International, Fabians such as Sidney and Beatrice Webb and George Bernard Shaw defended parliamentary representation, expertise, and leadership as essential to socialist politics. In contrast, radicals in the Social Democratic Federation, and the Independent Labour Party advanced a theory of “real democracy” centered on direct popular legislation. Rejecting parliamentarism as corrupt, they envisioned referenda, mandates, and recall as tools to secure individual sovereignty and to dissolve the dominance of permanent majorities. This model redefined majority rule as transient, issue-specific, and plural, challenging both plebiscitary leadership and technocratic elitism. Although the International ultimately adopted the referendum only for strategic purposes, these debates reveal an original, if forgotten, socialist account of democracy as a form of pluralist, non-electoral majoritarianism.