Recent case law has evidenced doctrinal ambiguity concerning whether State immunity precludes domestic courts’ jurisdiction when rights and interests of third-party States may be affected. This article posits that such confusion arises from a failure to recognize State immunity as a rule predicated on the sovereign status of the defendant. Through an analysis of State practice, the article contends that the concept of indirect impleading incorporated in the United Nations Convention on State Immunity does not challenge the status-based nature of this rule. Construing State immunity as a subject-matter rule erroneously conflates it with distinct doctrines, such as Monetary Gold and the act of State doctrine.