This paper explores the underlying causes of the stalled state-building process in Libya, identifying tribalism and regionalism as the primary obstacles. It examines how different modes of governance and external interventions have aggravated and perpetuated the detrimental impacts of these obstacles, which have been intractable because state-building did not evolve organically over time. Instead, an externally imposed state model bypassed the transitional stages, preventing Libya from addressing its underlying tensions and contradictions. Consequently, Libya has remained mired in a cycle of self-serving, rival loyalty networks, creating an environment that hinders the formation of cohesive national identity – a prerequisite for a modern state.