The UN Permanent Forum on Indigenous Issues (PFII) was established on 31 July 2000 and held its first session at UN Headquarters in New York in May 2002. The result of decades of development, the forum signified an official opening of the UN to indigenous peoples' participation alongside that of states. This article analyses the discussions on the establishment of the PFII and the role of indigenous peoples as political actors in those discussions. A focus of particular interest is the contradiction between state sovereignty and indigenous self-determination. In examining the establishment process, the analysis draws on scholarship dealing with norms, institutions, organisation and legitimacy. The themes and frames used by indigenous peoples that are significant in state-indigenous relations and that have had an effect on the forum are indigenousness, self-determination, rights and recognition. These show how the relationship between state sovereignty and indigenous self-determination underlay the establishment discussions and their outcome. The materials for the article comprise the transcripts of the establishment negotiations, interventions of state and indigenous representatives, as well as literature on the political participation of indigenous peoples, international law and the UN system and indigenous peoples. The discussions are analysed textually. The article claims that, although the UN is a state-dominated organisation, indigenous peoples are nevertheless able to affect international cooperation. This is an INDIPO project paper (Tennberg 2006).