The effect of state regulation of religion on governance has been explored theoretically by scholars, but it has not been tested empirically across nation states. The theory posits that secular states are more likely to benefit from better governance because of the absence of clerical involvement in politics, paving the way for the expansion of civil society and the passage of progressive political, economic, and social reforms. Using a unique dataset of more than 100 nation states, I find that countries with higher levels of state intervention on religion are more likely to suffer from inferior governance as reflected by higher levels of corruption and political instability and lower levels of rule of law entrenchment, bureaucratic effectiveness, and regulatory quality. Furthermore, states wherein there is no distinct separation between church and state are more likely to have lower levels of political openness and accountability.