This paper studies the overall institutional evolution of the Ottoman Empire and the foundation of the Turkish Republic through an analysis based on path-dependency theory. It focuses on the relationship between institutions and people, first as the subjects of the Ottoman Empire, then as the citizens of the Turkish Republic, and the societal forces in favor and in opposition of change. The role of conservative tendencies as a constant impediment or a reversal force in the way of institutional evolution occupies the center of the argument. The argument of this paper would lead to a claim that the process of creating new institutions by the political elite to replace the old, traditional ones initiated in the late 18th century and radicalized by a complete transformation on a civilizational scale with the proclamation of the republic in 1923 will be finalized with the future European integration of Turkey.