The transnational indigenous peoples' movement (TIPM) can convey important political leverage to local indigenous movements. Yet this study exposes a more problematic impact: the political authority gained by funding organisations who interpolate TIPM norms into new discourses regarding indigeneity, and deploy that discourse in local ethnic contests. In El Salvador the TIPM has encouraged the state to recognise the indigenous communities and has opened a political wedge for indigenous activism. Yet TIPM-inspired programmes by the European Union and UNESCO to support indigenous activism paradoxically weakened the Salvadorean movement by aggravating outside impressions that Salvadorean indigenous communities are ‘not truly Indian’.